Delaware | 001-34037 | 75-2379388 | ||
(State or other jurisdiction) | (Commission File Number) | (IRS Employer Identification No.) |
601 Poydras St., Suite 2400, New Orleans, Louisiana | 70130 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | ||
Number | Description | |
2.1
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Implementation Agreement, dated December 11, 2009 by and among Superior Energy Services, Inc., Superior Energy Services (UK) Limited and Hallin Marine Subsea International Plc. | |
2.2
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Rule 2.5 Announcement. | |
99.1
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Press release issued by Superior Energy Services, Inc., dated December 11, 2009. |
SUPERIOR ENERGY SERVICES, INC. |
||||
By: | /s/ Robert S. Taylor | |||
Robert S. Taylor | ||||
Chief Financial Officer | ||||
Clause | Heading | Page No. | ||||
1 |
INTERPRETATION | 1 | ||||
2 |
PRESS ANNOUNCEMENT | 1 | ||||
3 |
IMPLEMENTATION OF THE SCHEME | 2 | ||||
4 |
PREPARATION OF DOCUMENTATION | 3 | ||||
5 |
INFORMATION AND FINANCING | 3 | ||||
6 |
CONDUCT OF BUSINESS | 4 | ||||
7 |
APPROVALS | 6 | ||||
8 |
COMPETING PROPOSALS | 6 | ||||
9 |
INDUCEMENT FEES | 6 | ||||
10 |
TERMINATION | 8 | ||||
11 |
PROCUREMENT | 9 | ||||
12 |
NOTICES | 9 | ||||
13 |
ANNOUNCEMENT | 10 | ||||
14 |
REMEDIES AND WAIVERS | 10 | ||||
15 |
GENERAL | 11 | ||||
16 |
GOVERNING LAW AND JURISDICTION | 12 | ||||
SCHEDULE 1 TIMETABLE | 13 | |||||
SCHEDULE 2 INTERPRETATION | 16 |
(i)
(1) | SUPERIOR ENERGY SERVICES (UK) LIMITED a company incorporated under the laws of Scotland with registered number SC366014 and whose registered office is at c/o McGrigors LLP, Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1UD (Bidco); | |
(2) | HALLIN MARINE SUBSEA INTERNATIONAL PLC, a company incorporated under the laws of the Isle of Man with registered number 107479C and whose registered office is at International House, Castle Hill, Victoria Road, Douglas, Isle of Man, IM2 4RB (Hallin); and | |
(3) | SUPERIOR ENERGY SERVICES, INC. a company incorporated under the laws of Delaware having its principal place of business at 601 Poydras, Suite 2400, New Orleans, Louisiana (Parent). |
(A) | The Parent intends to make an offer for the shares of Hallin and proposes to implement such offer on the terms and subject to the conditions set out in the Press Announcement (as defined below) through Bidco, its wholly owned indirect subsidiary. | |
(B) | The parties have agreed to implement such offer by way of a scheme of arrangement although Parent and Bidco reserve the right, as set out in this deed of agreement, to elect to implement such offer by making a takeover offer for the entire issued and to be issued share capital of Hallin. | |
(C) | The parties have agreed to take certain steps to effect completion of the transaction and wish to enter into this deed of agreement to record their respective obligations relating to such matters. |
1 | INTERPRETATION | |
1.1 | In addition to terms defined elsewhere in this agreement, the definitions and other provisions in the schedule headed Interpretation apply throughout this Agreement, unless the contrary intention appears. | |
1.2 | In this Agreement, unless the contrary intention appears, a reference to a Clause, Subclause or Schedule is a reference to a clause, subclause or schedule to this Agreement. The Schedules form part of this Agreement. | |
1.3 | The headings in this Agreement do not affect its interpretation. | |
2 | PRESS ANNOUNCEMENT | |
The parties shall procure the release of the Press Announcement at or before 9.00 am on 11 December 2009 or such other time and date as may be agreed by the parties provided the Directors have not before then resolved to withdraw, amend or vary their recommendation of the Acquisition and notified Bidco of such resolution. Clauses 3 (Implementation of the |
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Scheme), 4 (Preparation of Documentation), 5 (Information and Financing), 6 (Conduct of Business) and 8 (Competing Proposals) of this Agreement shall have no effect until and unless release of the Press Announcement occurs in accordance with this Agreement. |
3 | IMPLEMENTATION OF THE SCHEME | |
3.1 | Subject as provided in this Agreement, each of Hallin and Bidco undertakes to each other that it will: |
(a) | co-operate and take or cause to be taken all such steps as are within its power and are both reasonable and necessary to implement the Scheme in accordance with the Timetable as soon as reasonably practicable; and | ||
(b) | keep each other informed and consult each other as to the progress of the Scheme. |
3.2 | Without prejudice to the generality of the foregoing Clause 3.1 Hallin undertakes: |
(a) | not to seek to amend the Timetable without the consent of Bidco (such consent not to be unreasonably withheld or delayed); and | ||
(b) | not to allot or issue or grant any options over any Hallin Shares between the date of this Agreement and the time at which the Scheme becomes effective. |
3.3 | Hallin agrees that the Scheme Document shall incorporate a unanimous recommendation of the Directors to Hallin Shareholders to vote in favour of the Scheme and the Hallin Resolution in the form set out in the Press Announcement, except to the extent that the Directors have determined (acting in good faith and having taken legal and financial advice to that effect) that such recommendation should not be given (or should be withdrawn or modified) having regard to their fiduciary duties as directors of Hallin. | |
3.4 | Hallin confirms to Bidco that the Scheme will contain provisions in accordance with the terms and conditions set out in the Press Announcement and other terms and conditions only as further agreed among Hallin and Bidco. Once the Scheme Document has been posted, save as required by law or regulation or the Panel or the London Stock Exchange or any court of competent jurisdiction, Hallin will not amend the Scheme without the prior written consent of Bidco (such consent not to be unreasonably withheld or delayed). | |
3.5 | The obligations of the parties to implement the Scheme or, if applicable, the Offer are subject to satisfaction (or waiver by Bidco) of the Conditions. Hallin undertakes to Bidco that it will procure that the Final Court Hearing is postponed if, at 6.00 pm on the Business Day preceding the date of the Final Court Hearing appearing on the Timetable, Bidco has notified Hallin in writing that it has not waived or treated as satisfied each Condition (such notification to include details of the reasons why any particular Condition has not been waived or satisfied) and if such notification is given at that time, Hallin undertakes not to arrange for the Final Court Hearing to be held on a new date without the prior consent of Bidco. | |
3.6 | Without prejudice to Clause 3.1 above, Bidco undertakes to use its reasonable endeavours to, and to procure that their directors and relevant professional advisers assist to, prepare all such documents and take all such steps as are necessary or desirable for the purposes of obtaining all Clearances as soon as reasonably practicable and in any event within the Timetable. Bidco undertakes to keep Hallin informed promptly of developments which are material or potentially material to the obtaining of Clearances by 22 January 2010 and to disclose to Hallin material correspondence with any relevant Competition Authority (subject |
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to redaction of confidential information). The parties will consult with the Panel from time to time as necessary in order to keep the Panel informed and, where appropriate, seek the consent of the Panel as to the Timetable and the process to obtain the Clearances. | ||
3.7 | Bidco shall undertake to the Court to be bound by the terms of the Scheme insofar as it relates to Bidco, including as to the discharge of the consideration of the Acquisition. | |
3.8 | Parent and Bidco will procure that the directors of Bidco accept responsibility for relevant information in the Scheme Document in accordance with the terms of the relevant responsibility statement set out in the Scheme Document. | |
3.9 | Hallin will procure that the Directors accept responsibility or relevant information in the Scheme Document in accordance with the terms of the relevant responsibility statement set out in the Scheme Document. | |
4 | PREPARATION OF DOCUMENTATION | |
4.1 | As soon as reasonably practicable following the date hereof, Hallin and Bidco shall complete the preparation of the Scheme Document and shall each work diligently with a view to finalising it no later than 6.00 pm on 11 December 2009 and posting it no later than 7.00 pm on 12 December 2009. | |
4.2 | Hallin agrees to consult with Bidco as to the form and content of the Scheme Document, to seek the approval (not to be unreasonably withheld or delayed) of Bidco of the content of the Scheme Document before it is posted and to afford Bidco sufficient time to consider such document in order to give such approval. Bidco undertakes to provide Hallin promptly with all such information about themselves and their shareholders as may reasonably be required for inclusion in the Scheme Document and to provide all such other assistance as Hallin may reasonably require in connection with the preparation of the Scheme Document, including access to, and ensuring the provision of reasonable assistance by, relevant professional advisers. | |
5 | INFORMATION AND FINANCING | |
5.1 | Without prejudice to the specific provisions of Clauses 5.2 and 5.3 below, Hallin shall (and shall procure that each other member of the Hallin Group shall) upon reasonable notice given by or on behalf of Bidco provide Bidco with all information, cooperation and assistance that Bidco may reasonably require for the purposes of the Acquisition and the financing of the Acquisition and in particular, but not limited to: |
(a) | effecting introductions to and making requests of any relevant third parties, reasonably requested by Bidco or the Parent; | ||
(b) | providing net asset statements, projected balance sheets and other relevant financial information for each member of the Hallin Group; and | ||
(c) | assisting in any approaches to any regulatory body whose consent may be required for the Acquisition or the charging of any assets of the Hallin Group for the purpose of financing the Acquisition. | ||
(d) | Hallin shall (and shall procure that each member of the Hallin Group shall) upon reasonable notice given by or on behalf of Bidco, provide such assistance as Bidco may reasonably request for Bidco and Parent to make preparatory arrangements for any post-acquisition restructuring or financing of the Hallin Group and co-operating with any requirements of the providers of such finance in each case so |
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that implementation can take place on or as soon as reasonably practicable after the Effective Date. |
5.2 | Without prejudice to the generality of Clause 5.1, Hallin shall, and shall procure that other members of the Hallin Group shall upon reasonable notice, to the extent requested by Bidco do all things reasonably necessary to ensure that the existing non-executive directors of Hallin shall resign (without claim against Hallin Group other than in respect of any outstanding directors fees and unreimbursed expenses) and that any persons nominated by Bidco are appointed as directors of members of the Hallin Group in substitution for the existing non-executive directors, in each case, with immediate effect from the Effective Date. | |
5.3 | For the avoidance of doubt, nothing contained in this Clause 5 shall require Hallin or any of its personnel to take any action which could: |
(a) | expose such person to personal liability (including criminal liability) to Bidco or any other person; or | ||
(b) | result in any breach of any legal requirement or rule; or | ||
(c) | be irrevocable, or revocable only by incurring further material costs, were the Scheme or Offer not to be completed, |
and any information provided by Hallin or any of its directors, senior management or professional advisers pursuant to this Clause 5 will be provided subject to the terms of the confidentiality provisions contained in paragraph 8 of the Indicative Offer Letter. |
6 | CONDUCT OF BUSINESS | |
6.1 | Hallin undertakes to Bidco that prior to the Effective Date or the termination of this Agreement (whichever is first to occur) it will not and will procure that no other member of the Hallin Group will, without the prior consent (such consent not to be unreasonably withheld or delayed) of any director of Bidco or on the instructions of any of Bidcos advisers (save where the relevant member of the Hallin Group is at the date of this Agreement under a contractual obligation to do so, provided that, if the relevant obligations are contained in a contract which is material in the context of the Hallin Group taken as a whole, such contract has been disclosed to Bidco prior to the date of this Agreement): |
(a) | carry on business other than in the ordinary and usual course; | ||
(b) | without prejudice to the generality of the foregoing paragraph (a), but subject to the fiduciary duties of its Directors, engage in any act or omission which would: |
(i) | require shareholder consent pursuant to Rule 21.1 of the Code; | ||
(ii) | be material for disclosure in the context of the Scheme or the Offer; or | ||
(iii) | cause any of the Conditions not to be satisfied; |
(c) | pay any dividend or make any other distribution of profits or capital; |
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(d) | materially alter the existing indebtedness (being indebtedness in the nature of borrowing and excluding recharging or management fees and accounts payable in respect of interest and tax) between members of the Hallin Group; | ||
(e) | acquire or dispose of any fixed assets with an individual value in excess of £500,000; | ||
(f) | enter into any new capital expenditure commitments on the Hallin business beyond planned expenditure set out on the CapEx Spreadsheet; | ||
(g) | accelerate or otherwise amend the terms of the current debt facilities of the Hallin Group or obtain any additional borrowing facility or grant any further new security for borrowings; | ||
(h) | purchase, redeem or repay or announce any proposal to purchase, redeem or repay any of its own shares or other securities (whether or not convertible into shares) or reduce or make any other change to any part of its share capital; or | ||
(i) | issue, authorise, propose or announce the issue of any debentures or make, recognise or propose or announce any change in its loan capital or, save in the ordinary course of business, incur or increase any indebtedness or contingent liability or become subject to any contingent liability other than to a wholly owned subsidiary of Hallin; or | ||
(j) | merge with or acquire any body corporate or acquire or dispose of or transfer, mortgage or encumber any material asset (including shares and trade investments) or any right, title or interest in any material asset, or undertake any material liability, other than in the ordinary course of business, or propose or announce any intention to propose any such merger, acquisition, disposal, mortgage or encumbrance (in each case other than in connection with the Scheme or in the ordinary course of business); or | ||
(k) | make or agree or consent to any change to the terms of any trust deed constituting any pension scheme(s) established for directors and/or employees of the Hallin Group and/or their dependants or to the benefits which accrue, or to the pensions which are payable thereunder, or to the basis on which qualification for or accrual or entitlement to such benefits or pensions are calculated or determined, or to the basis on which the liabilities of such pension schemes are funded or made, or agreed or consented to any change to the trustees involving the appointment of a trust corporation; or | ||
(l) | make (other than in connection with the Scheme) any amendment to its memorandum or articles of association; or | ||
(m) | issue any shares or options over shares (other than the issue by Hallin of shares pursuant to the requirements of the Hallin Share Scheme in respect of options granted prior to the date hereof); | ||
(n) | agreed to provide or modified the terms of any Hallin Share Scheme; or | ||
(o) | make any capital contribution, gift or subscription for share capital or other securities in any other company; |
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(p) | dispose of any interest in, or grant any encumbrances over, any real estate asset other than the disposal of leasehold interests for periods of twenty five years or less upon their original grant; | ||
(q) | make any amelioration to the terms of employment of any senior employee earning in excess of £50,000 per annum or the terms of any bonus arrangement otherwise than in connection with the promotion of such employee in the ordinary course or employ or offer employment to any individual whose annual basic salary will exceed £50,000; or | ||
(r) | settle any litigation for a cost in excess of £100,000. |
6.2 | Where, in relation to any of the foregoing matters, any member of the Hallin Group is under a regulatory obligation to carry out matters which would be prohibited thereby, the consent of Bidco will not be required but Hallin will procure that Bidco is promptly notified of such matter and the relevant regulatory obligations. The consent of Bidco for any of the foregoing matters (a)-(r) listed above will not be unreasonably withheld or delayed and will be deemed to have been granted if Hallin has not received any reply to a request for the consent of Bidco within five Business Days of making the request for such consent. | |
7 | APPROVALS | |
Each of Bidco and Hallin confirm to each other that they have obtained all appropriate internal authorisations for the purpose of entering into this Agreement and releasing the Press Announcement and the Scheme Document. | ||
8 | COMPETING PROPOSALS | |
8.1 | In the event that the Directors are approached by any person with a view to making an Independent Competing Offer Announcement or to making an Independent Competing Offer, Hallin shall procure that the Directors shall notify Bidco within twenty four (24) hours of the fact of that approach. | |
8.2 | Hallin undertakes to Bidco that it shall not, and shall procure that the members of the Hallin Group and its and their respective management and professional advisers do not, directly or indirectly solicit an offer or approach from any party: |
(a) | to make or with a view to making an Independent Competing Offer; or | ||
(b) | with a view to undertaking a transaction which is an alternative to the Acquisition. |
8.3 | This Clause 8 shall not prevent Hallin complying with its obligations under the Code, including but not limited to, providing information to a third party pursuant to Rule 20.2 of the Code. | |
9 | INDUCEMENT FEES | |
9.1 | As an inducement and a pre-condition to Bidco agreeing to the release of the Press Announcement in accordance with Clause 2, Hallin hereby irrevocably undertakes with Bidco to pay to Bidco (or as Bidco shall direct) the sum of one half of one per cent (0.5%) of the value of the offer made by Bidco for the entire issued and to be issued share capital of Hallin (exclusive of any VAT payable thereon) as stated in Clause 2 of the Press Announcement (the Bidco Inducement Fee) subject to the terms and conditions outlined in this Clause 9. |
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9.2 | The Bidco Inducement Fee shall be due and payable if following the release of the Press Announcement:- |
(a) | Hallin terminates the discussions with Bidco relating to the Acquisition; or | ||
(b) | the board of Hallin does not unanimously recommend the Acquisition (or the Directors withdraw, alter, adversely modify or qualify their approval or recommendation of the Acquisition); or | ||
(c) | provided that Bidco has not acted unreasonably, the Acquisition, lapses or is withdrawn; or | ||
(d) | Hallin during the Exclusivity Period takes any action which is within Rules 21.1 of the Code and is material in the context of the Acquisition; or | ||
(e) | Hallin commits a material breach of its obligations under Clauses 2, 3, 4, 5.2 or 8 of this Agreement and the Offer subsequently lapses or is withdrawn in accordance with its terms; or | ||
(f) | the Directors convene a shareholders meeting (other than pursuant to a requisition) for the purpose of considering proposals for a Material Transaction; or | ||
(g) | the Directors convene a shareholders meeting pursuant to a requisition for the purpose of considering proposals which are recommended by a majority of the board of Hallin for a Material Transaction; or | ||
(h) | Hallin Shareholders pass at a general meeting of Hallin a resolution to approve a Material Transaction; or | ||
(i) | Hallin enters into a binding agreement to dispose of key assets of the business during the Exclusivity Period. |
9.3 | The Bidco Inducement Fee shall only be payable to Bidco (by wire transfer of same day funds to an account designated by Bidco) to the extent lawful and permitted under applicable regulations and shall be due and payable (without any set-off, deduction or withholdings, save as required by law) 7 calendar days after the occurrence of any of the relevant circumstances referred to in Clause 9.2. | |
9.4 | If Hallin fails to pay any amount payable by it under this Clause 9, Bidco shall be entitled but not obliged to charge Hallin interest on the overdue amount, payable by Hallin forthwith on demand from the due date up to the date of actual payment, after as well as before, judgement, at a rate of 1 per cent per annum above the base rate for the time being of HBOS Group plc. Such interest shall accrue on a daily basis and be compounded quarterly. | |
9.5 | Hallin confirms that: |
(a) | the Directors and Blomfield Corporate Finance Limited, its financial adviser, believe the arrangements set out in this Agreement to be in best interests of the Hallin Shareholders; and | ||
(b) | these arrangements have been approved by the Panel pursuant to Rule 21.2 of the Code. |
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9.6 | Nothing in this Agreement shall oblige Hallin to pay any amount which the Panel determines would not be permitted by Rule 21.2 of the Code. | |
9.7 | Parent hereby irrevocably undertakes with Hallin to pay Hallin the sum of one half of one per cent. (0.5%) of the value of the offer made by Bidco for the entire issued and to be issued share capital of Hallin (exclusive of any VAT payable thereon) as stated in Clause 2 of the Press Announcement (the Hallin Inducement Fee) in cash on the first to occur of the following: |
(a) | Bidco terminates the discussions relating to the Acquisition; or | ||
(b) | provided Hallin has not acted unreasonably, the Acquisition, once made fails to complete for any reason in the absence of an Independent Competing Offer; or | ||
(c) | Bidco commits any material beach of its obligations under 2, 3 and 4 of this Agreement and the Offer subsequently lapses or is withdrawn in accordance with its terms. |
9.8 | The Hallin Inducement Fee shall only be payable to Hallin (by wire transfer of same day funds to an account designated by Hallin) to the extent lawful and permitted under applicable regulations and shall be due and payable (without any set-off, deduction or withholdings, save as required by law) 7 calendar days after the occurrence of any of the relevant circumstances referred to in Clause 9.7. | |
9.9 | If Bidco fails to pay any amount payable by it under this Clause 9, Hallin shall be entitled but not obliged to charge Bidco interest on the overdue amount, payable by Bidco forthwith on demand from the due date up to the date of actual payment, after as well as before, judgement, at a rate of 1 per cent per annum above the base rate for the time being of HBOS Group plc. Such interest shall accrue on a daily basis and be compounded quarterly. | |
9.10 | Hallin and the Parent hereby agree that the provisions of this Clause 9 shall supersede the inducement fee provisions contained in paragraph 8 of the Indicative Offer Letter, except that the provisions of this Clause 9.10 shall not prejudice any existing right or remedy of Hallin or the Parent in connection with any outstanding breach of such provisions of the Indicative Offer Letter. | |
10 | TERMINATION | |
10.1 | The provisions of Clauses 2 (Press Announcement) to 8 (Competing Proposals) may be terminated with immediate effect by Bidco or Hallin notifying the other to that effect and all rights and obligations of Bidco and Hallin thereunder shall, subject to the provisions of Clause 9 and 10.3, cease forthwith as follows: |
(a) | if an Independent Competing Offer (or any amendment, variation or revision of such offer) becomes or is declared wholly unconditional or is completed; or | ||
(b) | if the Scheme is not sanctioned by Hallin Shareholders at the Court Meeting or the Hallin Resolution is not passed at the Hallin GM, unless Bidco has previously elected to implement the Acquisition by way of an Offer (in accordance with this Agreement); or | ||
(c) | if the Court declines or refuses to sanction the Scheme or grant the Final Court Order, unless Bidco has previously elected to implement the Acquisition by way of an Offer (in accordance with this Agreement); or |
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(d) | if Bidco elects to implement the Acquisition by way of Offer and such Offer lapses or is withdrawn each in accordance with this Agreement; or | ||
(e) | if at any time prior to satisfaction of the Conditions, the recommendation by the Directors of Hallin to vote in favour of the Scheme or to accept an Offer, is withdrawn, qualified or adversely amended; or | ||
(f) | if any of the Conditions which has not been waived is (or becomes) incapable of satisfaction and if Bidco notifies Hallin that, notwithstanding the fact that it has the right to waive such Condition, it will not do so; or | ||
(g) | if the Conditions shall not have been all satisfied or waived (as the case may be) by 11 March 2010. |
10.2 | If Bidco elects in accordance with this Agreement to implement the Acquisition by way of an Offer, then from the posting of the offer document making such Offer the parties obligations under Clauses 3.1 (Implementation of the Scheme), 4 (Preparation of Documentation) and 13 (Announcements) shall terminate but this shall be without prejudice to the rights of any party that have arisen prior to that date under those clauses including (without limitation) any claim in respect of a breach of those clauses. | |
10.3 | The termination of Clauses 2 (Press Announcement) to 8 (Competing Proposals) pursuant to Clause 10.1 shall be without prejudice to the rights of any party that have arisen prior to such termination, including (without limitation) any claim in respect of a breach of this Agreement, and all other provisions of this Agreement shall survive any such termination. | |
11 | PROCUREMENT | |
Each party to this Agreement shall use its reasonable endeavours to procure that its employees, auditors and advisers shall do all such acts as are reasonably necessary to give effect to the terms of this Agreement. | ||
12 | NOTICES | |
12.1 | Any notice, approval, consent or other formal communication to be given or made under this Agreement must (unless expressly provided otherwise) be in writing and be delivered or sent by fax to the party to be served at its address or fax number appearing in this Agreement, being in the case of Hallin to: | |
The registered office of Hallin | ||
marked for the attention of IFG International Limited, Company Secretary | ||
with a copy to: | ||
DMH Stallard LLP, 6 New Street Square, London, EC4A 3BF | ||
marked for the attention of Keith Robinson | ||
and being in the case of Bidco to: | ||
c/o Superior Energy Services, Inc., 601 Poydras Street, Suite 2400, New Orleans, LA 70130 | ||
marked for the attention of William Masters, Director |
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with a copy to: | ||
McGrigors LLP, 141 Bothwell Street, Glasgow, G2 7EQ | ||
marked for the attention of Rosalie Chadwick | ||
and being in the case of Parent to: | ||
601 Poydras Street, Suite 2400, New Orleans, LA 70130 | ||
marked for the attention of William Masters, General Counsel | ||
with a copy to: | ||
McGrigors LLP, 141 Bothwell Street, Glasgow, G2 7EQ | ||
marked for the attention of Rosalie Chadwick | ||
or at such other address and/or fax number as it may have notified to the other parties in accordance with this Clause 12.1. | ||
12.2 | Any notice, approval, consent or other formal communications shall be deemed to have been given or made: |
(a) | if delivered, at the time of delivery; or | ||
(b) | if sent by fax, on the date of transmission, if despatched before 3.00 pm (local time at the place of destination) on any Business Day, and in any other case on the Business Day after the date of despatch. |
12.3 | In proving service of a notice or document it shall be sufficient to prove that delivery was made or that the fax message was properly addressed and transmitted, as the case may be. | |
13 | ANNOUNCEMENT | |
None of the parties will make any announcement about the implementation of the Acquisition, the Scheme or the Offer (if applicable) or the financing of the Acquisition or any matters arising in relation to or in connection with the Acquisition, the Scheme or the financing of the Acquisition or about any discussions between the parties concerning any of the foregoing, without the prior consent of the other parties (such consent in each case not to be unreasonably withheld or delayed) except to the extent required by law or the Code, any court of competent jurisdiction, the Panel, the Rules of the London Stock Exchange or any other governmental or regulatory body provided that, so far as it is lawful to do so prior to such disclosure, such party seeks the prior consent of the other parties to such announcement. | ||
14 | REMEDIES AND WAIVERS |
14.1 | The rights of each party under this Agreement may be exercised as often as necessary, are cumulative and not exclusive of rights and remedies provided by law and may be waived only in writing and specifically. Delay in exercising or non-exercise or any such right is not a waiver or that right. |
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14.2 | The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by law. | |
14.3 | Without prejudice to any other rights and remedies which any party may have, each party acknowledges and agrees that damages would not be an adequate remedy for any breach by any party of the provisions of this Agreement and any party shall be entitled to seek the remedies of injunction, specific performance and other equitable relief (and none of the parties shall contest the appropriateness or availability thereof), for any threatened or actual breach of any such provision of this Agreement by any party and no proof or special damages shall be necessary for the enforcement by any party of the rights under this Agreement. | |
15 | GENERAL | |
15.1 | Each of the provisions of this Agreement shall be enforceable independently of each of the other and its validity shall not be affected if any of the other is invalid. If any provision is void but would be valid if some part of it were deleted, the provision shall apply with such modification as may be necessary to make it valid. | |
15.2 | Nothing in this Agreement and no action taken by the parties under this Agreement shall constitute a partnership, association, joint venture or other co-operative entity between any of the parties. | |
15.3 | A person who is not a party to this Agreement may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999. | |
15.4 | This Agreement and the documents and other agreements referred to in it contain the whole agreement between the parties relating to the transactions contemplated by this Agreement and supersede all previous agreements between the parties relating to these transactions. | |
15.5 | Each party acknowledges that, in agreeing to enter into this Agreement, it has not relied on any representation, warranty, collateral contract or other assurance (except those set out in this Agreement) made by or on behalf of any other party at any time before the signature of this Agreement. Each of the parties waives all rights and remedies which, but for this Clause 15.5, might otherwise be available to it in respect of any such representation, warranty, collateral contract or other assurance. Nothing in this Clause 15.5 limits or excludes any liability for fraud. | |
15.6 | This Agreement may only be varied in writing signed by each of the parties. | |
15.7 | No party shall assign all or any part of the benefit of, or its rights or benefits under, this Agreement. | |
15.8 | Save as otherwise expressly provided in this Agreement, each party shall pay its own costs and expenses in relation to the negotiation and preparation of this Agreement and the implementation of the transactions contemplated hereby. |
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15.9 | This Agreement may be executed in any number of counterparts, and by the parties on separate counterparts, but shall not be effective until each party has executed at least one counterpart. | |
15.10 | Each counterpart shall constitute an original of this Agreement, but all the counterparts shall together constitute but one and the same instrument. | |
15.11 | Nothing in this Agreement constitutes an offer by Bidco or Parent for any shares in Hallin or is intended to commit or bind Bidco or Parent to make such an offer. | |
16 | GOVERNING LAW AND JURISDICTION | |
16.1 | This Agreement is governed by English law. | |
16.2 | The English courts have exclusive jurisdiction to settle any dispute, claim or controversy arising out of or in connection with this Agreement and the parties submit to the exclusive jurisdiction of the English courts. | |
16.3 | The parties waive any objections to the English courts on grounds that they are an inconvenient or inappropriate forum to settle any such dispute. |
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Tuesday 8 December
|
| Pre-claim form committee meeting | ||
| Issue claim form for permission to convene court meeting with draft order | |||
| File witness statement in support of claim form, exhibiting draft circular (including drafts of Scheme Document, explanatory statement, letter to shareholders, notices of court meeting and EGM and proxies) | |||
Friday 11 December
|
| 2.5 Announcement issued | ||
| Lodge in court final draft circular (containing draft Scheme Document etc marked to show any material changes from that filed with the witness statement) | |||
| Hearing of claim form before Registrar to convene court meeting and to approve scheme documentation | |||
| Settle orders, advertisements, notices and proxy cards with Court clerk | |||
| Print Scheme Document and related forms | |||
Saturday 12 December
|
| Advertise notice of Court meeting in newspapers as directed by Court | ||
| Post Scheme Document and related forms | |||
Monday 14 December
|
| Announce posting of Scheme Document | ||
Tuesday 15 December
|
| Advertisement in Isle of Man newspaper | ||
Thursday 17 December
|
| Advertisements in Isle of Man and UK newspapers |
13
Monday 4 January
|
| Finalise voting cards and agendas for meetings, Chairmans report of voting at Court meeting and witness statements as to services of notices for Registrars and Printers | ||||
Tuesday 5 January
|
| Registrars receive proxy cards and report on votes cast | ||||
Thursday 7 January
|
| Court meeting (11.30) and EGM (11.45) | ||||
| Following meetings, complete and obtain approval and signature of Chairman to (i) court report relating to Court meeting, (ii) minutes of EGM, and (iii) witness statement of Chairman exhibiting, amongst other things, court report, minutes of EGM, draft petition and circular to shareholders | |||||
| Following meetings, complete and obtain approval and signature of the executive officer, if not chairman, assigned to provide the witness statement supporting the petition to which is exhibited, amongst other things, the draft final form petition, circular to shareholders and relevant accounts. | |||||
| Announce results of meetings | |||||
| Hallin board meeting to approve presentation of petition and swearing of witness statement in support | |||||
Friday 8 January
|
| Issue petition and application for directions | ||||
| Service of notices | |||||
| Witness statements sworn and evidence filed at Court | |||||
Friday 15 January
|
| Hearing of application for directions before Registrar | ||||
| Settle advertisement of hearing and order on application for directions | |||||
Monday 18 January
|
| Advertise hearing of petition |
14
Tuesday 19 January
|
| Final date for return of form of instruction letter by Hallin option holders | ||||
Friday 22 January
|
| Scheme Record Time (11.59 p.m.) | ||||
| Last date of dealing of Hallin Shares | |||||
Monday 25 January
|
| Court hearing to sanction scheme | ||||
| Court order settled and obtained | |||||
Tuesday 26 January
|
| Scheme becomes effective | ||||
| Announce scheme effective | |||||
| Court order filed with Registrar of Companies in IoM | |||||
Wednesday 27 January
|
| Cancellation of listing of Hallin Shares | ||||
Tuesday 2 February
|
| Cheques for cash consideration to be posted to Hallin shareholders |
15
1 | In this Agreement: |
Acquisition
|
means the proposed acquisition by Bidco of the entire issued and to be issued share capital of Hallin as described in the Press Announcement; | ||
Acquisition Document
|
means the Scheme Document (together with the relevant forms of proxy to accompany such document) or, should Bidco elect to make the Offer, the relevant offer document (together with the forms of acceptance to accompany such document); | ||
Act
|
means the Isle of Man Companies Act 1931, as amended; | ||
Affiliate
|
in relation to any person means any other person directly or indirectly controlling, controlled by, or under common control with, such person; | ||
Agreed Form
|
means, in relation to any document, the form of that document which has been initialled for the purpose of identification by or on behalf of each of Bidco and Hallin; | ||
Business Day
|
means a day (other than a Saturday or Sunday) on which banks are generally open in London for normal business; | ||
CapEx Spreadsheet
|
means the spreadsheet in the Agreed Form setting out Hallins current planned capital expenditure for the Hallin business; | ||
Clearances
|
means all consents, clearances, permissions and waivers as may be necessary, and all filings and waiting periods as may be necessary, from or under the laws, regulations of practices applied by any relevant Competition Authority in connection with the implementation of the Acquisition, the Scheme or the Offer and references to Clearances having been satisfied shall be construed as meaning that the foregoing shall have been obtained on terms satisfactory to Bidco or, where appropriate, made or expired; | ||
Code
|
means the City Code on Takeovers and Mergers; | ||
Competition Authorities
|
means any relevant government, governmental, national, supra-national, completion or antitrust body or other authority, in any jurisdiction, which is responsible for applying merger control or other competition or antitrust legislation or regulation in such jurisdictions; | ||
Conditions
|
means the conditions to implementation of the Scheme and the Acquisition or, if applicable, the Offer, set out in the Press | ||
16
Announcement; | |||
Court
|
means the High Court of Justice of the Isle of Man or its applicable court of appeal, as the case may be; | ||
Court Meeting
|
means any meeting or meetings of the Hallin Shareholders as may be convened pursuant to an order of the Court pursuant to section 152 of the Act for the purposes of considering and, if thought fit, approving the Scheme (with or without amendment), including any adjournment or postponement of any such meeting; | ||
Directors
|
means the board of directors of Hallin; | ||
Effective Date
|
means the date upon which (i) the Scheme becomes effective in accordance with its terms, or (ii) if Bidco elects to implement the Acquisition by way of Offer, the Offer becomes or is declared unconditional in all respects; | ||
Exclusivity Period
|
means the period starting on the date of this Agreement and ending at midnight on 11 March 2010; | ||
Final Court Hearing
|
means the final hearing of the Petition by the Court; | ||
Final Court Order
|
means the order of the Court confirming the reduction of capital provided for by the Scheme under section 56 of the Act; | ||
Hallin GM
|
means the general meeting of Hallin Shareholders to be convened for the purposes of considering and, if though fit, approving the Hallin Resolution, including any adjournment or postponement of that meeting; | ||
Hallin Group
|
means the Hallin and its subsidiary undertakings, and references to a member or members of the Hallin Group shall be construed accordingly; | ||
Hallin Resolution
|
means the special resolution to approve, amongst other things, the cancellation of the entire issued and to be issued share capital of Hallin and such other matters as may be necessary or desirable to implement the Scheme or any Offer; | ||
Hallin Share Scheme
|
has the meaning given to it in the Press Announcement; | ||
Hallin Shareholders
|
means the holders of Hallin Shares; | ||
Hallin Shares
|
means the ordinary shares of 1p each in the capital of Hallin; | ||
Independent Competing
|
means: | ||
Offer |
|||
(a) either: | |||
(i) an offer or scheme of arrangement; or |
17
(ii) recapitalisation
or other transaction, |
|||
in each case involving a possible change of control of
Hallin (i.e. an acquisition of shares in Hallin carrying
15% or more of the voting rights of Hallin); or |
|||
(b) the sale of all or a substantial proportion of the
assets of any member of the Hallin Group, |
|||
and, in each case, which is made or entered into by a party which is not acting in concert with Bidco (as such term is defined in the Code); | |||
Independent Competing Offer Announcement |
means an announcement of a firm intention to make an Independent Competing Offer whether or not made pursuant to Rule 2.5 of the Code; | ||
Inducement Fee
|
has the meaning given in Clause 9.1; | ||
Indicative Offer Letter
|
means the indicative offer letter dated 25 November 2009 between Hallin and the Parent; | ||
Material Transaction
|
means: | ||
(c) the acquisition of shares in Hallin carrying 15% or
more of the voting rights of Hallin; or |
|||
(d) the sale of all or a substantial proportion of the
assets of any member of the Hallin Group; or |
|||
(e) the reconstruction or reorganisation of any member of
the Hallin Group or any of their respective businesses; or |
|||
(f) the removal of any of the executive directors from the
board of Hallin or the appointment of such number of
further directors to the board of Hallin as constitute a
majority in number of such board, |
|||
in each case other than pursuant to the Scheme or the Offer; | |||
Offer
|
means a recommended offer made on behalf of Bidco to acquire all of the Hallin Shares, on the terms and subject to the conditions set out in the Press Announcement (subject to appropriate amendments, including (without limitation) the inclusion of an acceptance condition set at ninety per cent., of the shares to which such offer relates) and, where the context admits, any subsequent revision, variation, extension or renewal of such offer; | ||
Panel
|
means the Panel on Takeovers and Mergers; |
18
Petition
|
means the petition applying to the Court for the Final Court Order; | ||
Press Announcement
|
means the press announcement to be issued in accordance with Rule 2.5 of the Code announcing the terms of the Scheme, a final draft of which is in the Agreed Form; | ||
Registrar
|
means the Isle of Man Companies Registry; | ||
Scheme
|
means the proposed acquisition of the Hallin Shares by Bidco by way of a scheme of arrangement under section 152 of the Act, on the terms and subject to the Conditions set out in the Press Announcement and to be set out in the Scheme Document with or subject to any modification, addition or condition approved or imposed by the Court and agreed by Hallin and Bidco; | ||
Scheme Document
|
means the document to be sent to Hallin Shareholders which will contain, inter alia, the terms and conditions of the Scheme and which will include the notices convening the Court Meeting and the Hallin GM, a draft of which is in the Agreed Form; and | ||
Timetable
|
means the timetable for the implementation of the Scheme, the current form of which is set out in Schedule 1 and which may be amended from time to time in accordance with Clause 3.2 (Implementation of the Scheme). |
2 | In this Agreement: |
(a) | references to a person include a body corporate and an unincorporated association of persons; | ||
(b) | references to an individual include his estate and personal representatives; | ||
(c) | references to a party to this Agreement include references to the successors and assigns (immediate or otherwise) of that party; | ||
(d) | a person shall be deemed to be connected with another if that person is connected with that other within the meaning of section 839 of the Income and Corporation Taxes Act 1988 (as in force at the date of this Agreement); | ||
(e) | the expressions acting in concert, control and offer shall have the meaning given in the Code; | ||
(f) | references to a transfer of a share include the disposal of any interest in that share (including the creation of any security interest or other third party right over any interest in that share and any renouncement in favour of another person of any right to the allotment or transfer of that share); | ||
(g) | the words including and include shall mean including without limitation and include without limitation, respectively; |
19
(h) | any reference importing a gender includes the other gender; | ||
(i) | any reference to a time of day is to London time; | ||
(j) | any reference to £ is to Pound Sterling; and | ||
(k) | any reference to a document is to that document, varied or novated from time to time otherwise than in breach of this Agreement or that document. |
3 | In this Agreement, any reference, express or implied, to an enactment includes: |
(a) | that enactment as re-enacted, extended or applied by or under any other enactment (before, on or after the signature of this Agreement); | ||
(b) | any enactment which that enactment re-enacts (with or without modification); and | ||
(c) | any subordinate legislation made (before, on or after the signature of this agreement) under any enactment, as re-enacted, amended, extended or applied as described in paragraph (a) above, or under any enactment referred to in paragraph (b) above, |
provided that no such enactment or subordinate legislation made after the date of this Agreement shall increase the liability of any party under this agreement, and enactment includes any legislation in any jurisdiction. |
4 | Words and expressions defined in the Act have the same meaning in this Agreement unless otherwise defined. | |
5 | The eiusdem generis rule does not apply to this Agreement. Accordingly, specific words indicating a type, class or category of thing do not restrict the meaning of general words following such specific words, such as general words introduced by the word other or a similar expression. Similarly, general words followed by specific words shall not be restricted in meaning to the type, class or category of thing indicated by such specific words. | |
6 | A reference in this Agreement to any English legal term for any action, remedy, method or form of judicial proceeding, legal document, court or any other legal concept or matter will be deemed to include a reference to the corresponding or most similar legal term in any jurisdictions contemplated by this Agreement or the terms of this Agreement. | |
7 | Paragraphs 1 to 6 above apply unless the contrary intention appears. |
20
EXECUTED as a DEED by
|
) | ||||||
SUPERIOR ENERGY SERVICES (UK) |
|||||||
LIMITED
|
) | /s/ Robert S. Taylor | |||||
acting by
|
) | ||||||
and
|
) | /s/ William B. Masters | |||||
EXECUTED as a DEED by
|
) | ||||||
HALLIN MARINE SUBSEA
|
) | ||||||
INTERNATIONAL PLC
|
) | ||||||
) | |||||||
acting by
|
) | /s/ Anthony Ebel | |||||
and
|
) | /s/ John Quinn | |||||
EXECUTED as a DEED by
|
) | ||||||
SUPERIOR ENERGY
|
) | ||||||
SERVICES, INC.
|
) | ||||||
acting by
|
) | /s/ Robert S. Taylor | |||||
and
|
) | /s/ Kenneth L. Blanchard |
21
| Superior UK is to acquire Hallin for 233 pence per Hallin Share in cash. | |
| The transaction is recommended by the Hallin Board and values the fully diluted share capital of Hallin at approximately £103.5 million. | |
| The transaction is to be effected by means of a Scheme of Arrangement, subject to Court and Hallin Shareholder approval. | |
| The Scheme is expected to become effective on 26 January 2010. |
| The boards of Hallin and Superior UK announce that they have reached agreement on the terms of a recommended cash takeover of Hallin by Superior UK (the Acquisition). The Acquisition is to be effected by way of a Court sanctioned scheme of arrangement under section 152 of the Isle of Man Companies Act 1931 (the Scheme). | |
| The Offeror is a wholly-owned indirect subsidiary of Superior and was formed for the purpose of making the Proposals. | |
| Under the terms of the Acquisition, Hallin Shareholders will receive 233 pence in cash for each Hallin Share, valuing the existing issued share capital of Hallin at approximately £96.5 million and approximately £103.5 million on a fully diluted basis. |
1
| The consideration of 233 pence in cash for each Hallin Share represents a premium of approximately: |
| 87.1 per cent. to the Closing Price of 124.5 pence per Hallin Share on 10 December 2009 being the last Business Day prior to the date of this announcement; | ||
| 94.5 per cent. to the average Closing Price of 119.8 pence per Hallin Share for the six month period prior to 10 December 2009; | ||
| 109 per cent. to the net asset value per Hallin Share, based on total equity of approximately US$75.0 million included in Hallins most recently published (unaudited) statement of its financial position as of 30 June 2009. |
| The Hallin Directors, who have been so advised by Blomfield, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the Hallin Board, Blomfield has taken into account the Hallin Directors commercial assessments. Accordingly, the Hallin Directors unanimously intend to recommend that Hallin Shareholders vote in favour of the Proposals as they have irrevocably undertaken to do in respect of their holdings of 13,123,864 Hallin Shares in aggregate, representing approximately 31.7 per cent. of the existing issued share capital of Hallin. | |
| In addition, Superior UK has received irrevocable undertakings from certain institutional investors to vote in favour of the Proposals in respect of 8,700,000 Hallin Shares in aggregate, representing approximately 21.0 per cent. of the existing issued share capital of Hallin. | |
| Superior UK has therefore received irrevocable undertakings to vote in favour of the Proposals in respect of 21,823,864 Hallin Shares in aggregate, representing approximately 52.7 per cent. of the existing issued share capital of Hallin. |
| Hallin offers Superior the opportunity to enhance its position in the subsea well services market through the combination of Superiors well intervention assets and Hallins existing subsea assets, new build vessel programme and international infrastructure. |
| The Acquisition will be funded using the Superior Groups currently committed debt financing arranged by JP Morgan Chase Bank, N.A. |
| The Scheme will be put to Hallin Shareholders for their approval at the Court Meeting and at the Hallin EGM. In order to become effective, the Scheme must be approved by a majority in number representing at least 75 per cent. in value of all Hallin Shares that are voted at the Court Meeting. In addition, the Special Resolution approving the Scheme and amending the Hallin Share Plan and the Articles must be passed by Hallin Shareholders representing 75 per cent. of the votes cast at the Hallin EGM. |
2
| It is expected that the Scheme Document will be posted on or before 12 December 2009 and that the Court Meeting and the Hallin EGM to approve the Scheme and deal with certain other related matters will be held on 7 January 2010. | |
| It is expected that the Scheme will become effective on 26 January 2010, subject to the satisfaction or waiver of all the conditions set out in Appendix I to this announcement. |
Superior |
||
Robert Taylor
|
Tel: +1 (504) 587 7374 | |
Westy Ballard |
||
For investors / shareholders / media |
3
Greg Rosenstein
|
Tel: +1 (504) 587 7374 | |
Simmons & Company International |
||
(Adviser to Superior & Superior UK)
|
Tel: +1 (713) 236 9999 | |
Frederick W. Charlton |
||
Paul R. Steier |
||
Cenkos Securities plc |
||
(Financial adviser to Superior & Superior UK)
|
Tel: +44 (0) 131 220 6939 | |
Alan Stewart |
||
Jon Fitzpatrick |
||
Ken Fleming |
||
Hallin |
||
John Quinn (Director)
|
Tel: +44 (0)845 5191156 | |
Blomfield Corporate Finance Limited |
||
(Financial adviser to Hallin)
|
Tel: +44 (0)20 7444 0800 | |
Ben Jeynes |
||
Derek Crowhurst |
||
Alan MacKenzie |
||
Powerscourt Media Ltd |
||
(Public relations adviser to Hallin)
|
Tel: +44 (0) 207 250 1446 | |
Elizabeth Rous / Rob Greening |
4
5
6
1 | Introduction |
2 | The Acquisition |
7
3 | Recommendation | |
The Hallin Directors, who have been so advised by Blomfield, consider the terms of the Acquisition to be fair and reasonable. In providing its advice, Blomfield has taken into account the Hallin Directors commercial assessments. | ||
Accordingly, the Hallin Directors believe that the terms of the Acquisition are in the best interests of the Hallin Shareholders as a whole and intend unanimously to recommend that Hallin Shareholders vote in favour of the resolutions to be proposed at the Court Meeting and the Hallin EGM. | ||
4 | Background to and reasons for the Acquisition | |
In Hallins interim report for the six months ending 30 June 2009, issued in September this year, Hallin stated its intention was to actively develop the Company and its revenue generating assets, seeking to deliver the best possible performance and growth in a difficult environment. | ||
Whilst the current economic climate has resulted in a number of exciting opportunities for Hallin to enhance its operations, the Company has become increasingly restricted by the lack of readily available finance. | ||
Following an approach by Superior the Hallin Board has recognised that by joining Hallin with a financially strong and successful group, the Company would be considerably better placed to take advantage of opportunities arising during the foreseeable future. | ||
By linking Hallins established operations in its international markets with the considerable operating base of Superior in the United States, coupled with the opportunity to have access to its strong investment capability, the ongoing group will be more readily able to fulfil its potential. | ||
The Hallin Board believes the Acquisition will be beneficial to all stakeholders, including Hallins staff, allowing them greater opportunities. | ||
Benefits to Hallin and Scheme Shareholders | ||
Under the Acquisition, Scheme Shareholders will benefit from a fair price in cash (which offers certainty). Hallin will also gain access to Superiors technical expertise and financial strength. The Acquisition offers Hallins employees a chance to become part of a larger, global organisation with a broader range of career development opportunities. | ||
Benefits to Superior UK | ||
Superior has followed Hallins development and technical successes to date and believes it can positively complement Hallins operations and accelerate the growth of the business. Superiors financial resources would also enable the Hallin Group to take advantage of future business development opportunities in the market to grow the Hallin Groups position further. | ||
The Acquisition complements the Superior Groups existing oilfield services capability and enhances its technical offering, which are already key focus areas for the Superior Group. | ||
5 | Reasons for recommending the Acquisition |
8
In the light of these factors, the Hallin Directors considered carefully the approach from Superior. Following a period of due diligence, Superior UK has now put forward a firm proposal to acquire Hallin at 233 pence per Hallin Share. The Hallin Directors, having considered the above factors, believe that 233 pence per Hallin Share offers Hallin Shareholders certain cash value at a substantial premium to its current market value. As a result, the Hallin Directors are unanimously recommending that Hallin Shareholders vote in favour of the Scheme. |
6 | Irrevocable Undertakings | |
Superior UK has received irrevocable undertakings to vote in favour of the Proposals at the Meetings (and if Superior UK exercises its right to acquire the Hallin Shares by means of a takeover offer, to accept such offer) from:- |
| all of the Hallin Directors in respect of their entire beneficial holdings of Hallin Shares amounting, in aggregate to 13,123,864 Hallin Shares, representing approximately 31.7 per cent. of Hallins existing issued share capital; | ||
| Damor Investments Limited in respect of its entire beneficial holding of Hallin Shares amounting to 5,000,000 Hallin Shares, representing approximately 12.1 per cent. of Hallins existing issued share capital; and | ||
| Gresham House PLC in respect of its entire beneficial holding of Hallin Shares amounting to 3,700,000 Hallin Shares, representing approximately 8.9 per cent. of Hallins existing issued share capital. |
In aggregate, Superior UK has received irrevocable undertakings to vote in favour of the Proposals in respect of 21,823,864 Hallin Shares, representing approximately 52.7 per cent. of Hallins existing issued share capital. | ||
Further details of these irrevocable undertakings, including the circumstances in which they cease to be binding, are set out in Appendix III to this announcement. | ||
7 | Implementation Agreement, non-solicitation and inducement fee |
(a) | it will not and will procure that none of the members of the Hallin Group and its and their respective management and professional advisers do not, directly or indirectly, solicit an offer or approach from any party (i) to make or with a view to making an Independent Competing Offer; or (ii) with a view to undertaking a transaction which is an alternative to the Acquisition, other than as required under the Takeover Code; and |
9
(b) | it shall notify Superior UK within twenty-four (24) hours if: (i) it receives an approach from any person with a view to making an Independent Competing Offer Announcement or to making an Independent Competing Offer, or (ii) it becomes aware of any breach by it of the terms of the Implementation Agreement. |
The Implementation Agreement terminates in certain circumstances, including: |
(a) | if the Scheme lapses or terminates, unless Superior UK has elected prior to such time, to implement the Acquisition by way of an offer made pursuant to the Takeover Code; | ||
(b) | if Superior UK elects to implement the Acquisition by way of an offer and such offer is withdrawn or lapses; | ||
(c) | if at any time prior to satisfaction of the Conditions there is an Independent Competing Offer which subsequently becomes or is declared unconditional in all respects or is otherwise completed; or | ||
(d) | if the Acquisition has not become effective by 11 March 2010 or such later date (if any) as Superior UK and Hallin may, with the consent of the Takeover Panel, agree and (if required) the Court may approve. |
Inducement fee | ||
As an inducement to Superior UK to make the Acquisition, Hallin has agreed to pay an inducement fee to Superior UK of the amount invoiced by the advisers of Superior UK at the time of the breach, capped to a maximum of 0.5 per cent. of the Offer Value (exclusive of any VAT payable thereon) upon the occurrence of specified events, including without limitation, in the event that: |
(a) | Hallin terminates the discussions with Superior UK relating to the Acquisition; | ||
(b) | the Hallin Directors do not unanimously recommend the Acquisition (or the Hallin Directors withdraw, alter, adversely modify or qualify their approval or such recommendation of the Acquisition); | ||
(c) | provided that Superior UK has not acted unreasonably, the Acquisition, once made, lapses or is withdrawn; | ||
(d) | Hallin during the Exclusivity Period takes any action which is within Rule 21.1 of the Takeover Code and is material in the context of the Acquisition; | ||
(e) | Hallin enters into a binding agreement to dispose of any key assets of the business during the Exclusivity Period; or | ||
(f) | Hallin commits a material breach of its obligations under the Implementation Agreement and the Acquisition subsequently lapses or is withdrawn in accordance with its terms, |
and such payment shall be made, within seven days of the event which gives rise to the obligation to make the payment. |
10
Superior has irrevocably undertaken with Hallin to pay to Hallin the sum of 0.5 per cent. of the Offer Value in the event that: |
(a) | Superior UK commits a material breach of its obligations under the Implementation Agreement and the Acquisition subsequently lapses or is withdrawn in accordance with its terms; | ||
(b) | Superior UK terminates discussions relating to the Acquisition; or | ||
(c) | provided Hallin has not acted unreasonably, the Acquisition, once made fails to complete for any reason in the absence of an Independent Competing Offer, |
and such payment shall be made within seven days of the event which gives rise to the obligation to make payment. | ||
8 | Management and employees | |
Superior UK recognises the significant achievements of Hallins management team and its employees and attaches considerable importance to retaining the skills and expertise of the management and employees of Hallin and its subsidiaries. Superior UK believes that the current management and employees are an important part of the successful implementation of its plans for Hallin. Superior UK does not therefore intend to make any material changes to Hallins staffing levels, nor to any conditions of employment. | ||
Superior has no current plans to change the locations of Hallins places of business, nor does it have any current plans to redeploy the fixed assets of Hallin. As such, in the event the Scheme becomes effective Superior UK has given the Hallin Directors assurances that the existing contractual employment and pension rights of all of Hallins employees will at a minimum be fully safeguarded. | ||
9 | Information on Hallin | |
Hallin was formed in 2003 to acquire the business of Hallin Marine Systems International Ltd, which had been formed by John Giddens in 1998. The Hallin Group provides high quality marine and underwater services to the offshore industry, particularly in support of oil and gas development. Hallin has grown from a US$1 million turnover company in its first year to a US$139 million turnover company in 2008 and was admitted to trading on AIM in April 2005. | ||
The Hallin Group is an experienced provider of subsea construction and inspection solutions. It employs experienced subsea engineering staff to manage projects using: support vessels; saturation diving systems; air/mixed gas diving spreads and remote operating vehicles (ROVs). Hallin owns the principal operating assets of diving systems and ROVs. | ||
The Hallin Groups operations cover: South East Asia; India; China; Africa; the Middle East; the US; Russia; Australia and the UK. | ||
Hallin is divided into four divisions: subsea operations West Division, based in Aberdeen, Scotland; subsea operations East Division, based in Singapore; the Manufacturing Division, also in Singapore where saturation diving systems, air diving systems and ROVs are designed and manufactured; and Prospect Flow Solutions Limited (Prospect), the engineering consultancy service to the energy sector with offices in Aberdeen, Derby, Houston and Singapore. A further engineering design centre focusing on robotics is located in the UK at Malton, North Yorkshire. |
11
12
Hallins Western contracting division has in contrast seen continued high levels of utilisation of its work class ROV assets. | ||
Hallins Engineering division, Prospect, has seen a fall in demand for its specialist engineering and design services in its existing markets. However, Hallin has opened a new Prospect office in Singapore which has been successful in attracting profitable work and the outlook for this business looks encouraging. | ||
The Manufacturing division continues to build subsea intervention equipment for both Hallin and third parties and has a significant pipeline of opportunities with new customers. However, this division is seeing a lengthening of the decision-making process by clients which may be a reflection of the continued lack of availability of credit in the market. | ||
Hallin continues to expand its portfolio of specialist subsea assets and further ROVs have continue to be delivered to the contracting divisions, all with the assistance of bank funding. The build of Hallins second subsea operations vessel, the Windermere, remains on course for delivery in the first half of 2010. | ||
As a result of the subdued market in which the Hallin Group is currently operating, the mechanical failure of the Ullswater and the consequent delay in the Hallin Groups performance of contracts on which the Ullswater is utilised, the Hallin Groups profitability for the year ended 31 December 2009 is expected to be less than current market expectations. | ||
10 | Information on the Superior Group and Superior UK | |
Superior was founded in Delaware in 1991 and is now based in New Orleans, Louisiana. It is a leading provider of specialised oilfield services and equipment, focused on serving the drilling and production-related needs of the worlds largest oil and gas companies. | ||
Superior operates in three segments: Well Intervention Services, Rental Tools and Marine Services. It is an industry leader in providing production-related services and solutions aimed at maintaining and enhancing well productivity. Superior manufactures, rents and sells specialised tools used to drill and produce oil and gas wells. In addition, it is the largest owner and operator of modern liftboats with a total of 26 in its rental fleet. | ||
Superior has an established international presence, with operations in the Middle East, Europe, Africa, Asia Pacific and South America. Superior has more than 4,200 employees working from approximately 130 locations in 12 countries. | ||
For the 12 month period ended 31 December 2008, Superior reported profit before tax of US$559 million (2007: US$433 million), total assets of US$2,492 million (2007: US$2,257 million) and net assets of US$2,193 million (31 December 2007: US$1,965 million). | ||
Superior UK, which was formed for the purpose of the Acquisition, is a wholly-owned direct subsidiary of SESI, L.L.C., with its ultimate parent company being Superior. It has not traded since its date of incorporation, nor has it entered into any obligations, other than in respect of the Acquisition. | ||
Superior UK is a private limited company incorporated in Scotland on 23 September 2009 under company number SC366014. Its directors are Robert Taylor and William Masters. | ||
11 | Future plans |
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Hallin offers Superior the opportunity to enhance its position in the subsea well services market through the combination of Superiors well intervention assets and Hallins existing subsea assets, new build vessel programme and international infrastructure. | ||
12 | Financing | |
The Acquisition will be funded using the Superior Groups currently committed debt financing arranged by JP Morgan Chase Bank, N.A. | ||
Cenkos, financial adviser to Superior UK, has confirmed that it is satisfied that sufficient resources are available to Superior UK to satisfy the full cash consideration payable to Hallin Shareholders under the terms of the Acquisition. | ||
Further information on the financing of the Acquisition will be set out in the Scheme Document. | ||
13 | Scheme of Arrangement | |
The Acquisition is expected to be effected by means of a Scheme of Arrangement between Hallin and the Scheme Shareholders. The purpose of the Scheme is to provide for Superior UK to become the owner of the whole of the issued and to be issued share capital of Hallin. This is to be achieved by transferring the Scheme Shares held by Scheme Shareholders to Superior UK. | ||
It is expected that the Scheme Document will be posted on 12 December 2009 and that the Scheme will become effective on 26 January 2010, subject to the satisfaction or waiver of all the conditions set out in Appendix I to this announcement. | ||
The Scheme will be subject to the conditions and certain terms set out in this announcement and to the further terms to be set out in the Scheme Document. In particular, the Scheme requires the approval of Hallins Shareholders by the passing of a resolution at the Court Meeting on 7 January 2010. The resolution must be approved by a majority in number of the Hallin Shareholders present and voting, either in person or by proxy, at the Court Meeting representing not less than 75 per cent. in value of the Hallin Shares held by such Hallin Shareholders. | ||
Implementation of the Scheme, which must occur by 31 May 2010, will also require the passing of the Special Resolution, requiring the approval of Hallin Shareholders representing at least 75 per cent. of the votes cast at the Hallin EGM. | ||
Following the Meetings, the Scheme must be sanctioned and confirmed by the Court and will only become effective on delivery to the Companies Registry of a copy of the Scheme Court Order. | ||
Upon the Scheme becoming effective, it will be binding on all Scheme Shareholders, irrespective of whether or not they attended or voted at the Court Meeting or the Hallin EGM. | ||
Further details of the Proposals (including notices of the Meetings), together with Forms of Proxy, will be contained in the Scheme Document to be issued to Hallin Shareholders, and, for information only, to persons with information rights and participants in the Hallin Share Plan within 28 days of this announcement, unless otherwise agreed with the Takeover Panel. Resolutions to approve the Proposals will be put to Hallin Shareholders at the Meetings. | ||
Expected timetable of principal events: |
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Event | ||||
Posting of Scheme Document | 12 December 2009 | |||
Court Meeting | 7 January 2010 | |||
Hallin EGM | 7 January 2010 | |||
Court hearing to sanction the Scheme (if approved by the Hallin Shareholders) | 25 January 2010 | |||
Effective Date (if sanction and confirmation of the Court is received) | 26 January 2010 | |||
Latest date for consideration to be posted to Hallin Shareholders (if Scheme becomes effective on 26 January 2010) | 9 February 2010 |
A more detailed timetable will be included within the Scheme Document. | ||
14 | Disclosure of interests in Hallin | |
Superior UK has received irrevocable undertakings from Hallin Shareholders as described in paragraph 6 above. | ||
As at the close of business on 10 December 2009, being the last practicable date prior to this announcement, neither Superior UK, nor any of the Superior UK Directors nor, so far as Superior UK is aware, any person acting in concert with Superior UK has: (i) any interest in or right to subscribe for any relevant securities of Hallin; (ii) any short positions in respect of relevant securities of Hallin (whether conditional or absolute and whether in the money or otherwise), including any short position under a derivative, any agreement to sell or any delivery obligation or right to require another person to purchase or take delivery; or (iii) borrowed or lent any relevant security of Hallin (save for any borrowed securities which have been on-lent or sold). | ||
In view of the requirement for confidentiality, Superior UK has not made any enquiries in this respect of certain parties who may be deemed by the Takeover Panel to be acting in concert with it for the purposes of the Proposals. | ||
15 | Hallin Share Plan | |
The Scheme will extend to any Hallin Shares that are unconditionally allotted or issued prior to the Scheme Record Time pursuant to the exercise of options or vesting of awards under the Hallin Share Plan. | ||
The Scheme will not extend to Hallin Shares unconditionally allotted or issued pursuant to the exercise of options or the vesting of awards under the Hallin Share Plan at or after the Scheme Record Time. At present options granted under the Hallin Share Plan which are not already exercisable do not become exercisable on a scheme of arrangement. An amendment is being proposed to the Hallin Share Plan to provide that options granted pursuant to the scheme are exercisable upon the approval by Hallin Shareholders of the Special Resolution. The proposed amendments will be set out in the Scheme Document. |
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Participants will be invited to agree to the conditional exercise of their options prior to the Court Hearing, conditional only upon the Scheme being sanctioned by the Court. | ||
Appropriate proposals will be made to members of the Hallin Share Plan pursuant to Rule 15 of the Takeover Code at the same time as the Scheme Document is issued or as soon as possible thereafter. Details of these proposals will be set out in the Scheme Document and in separate letters to be sent to members of the Hallin Share Plan. | ||
16 | Delisting and re-registration | |
Application will be made to the London Stock Exchange for the Hallin Shares to cease to be admitted to trading on AIM, to take effect immediately following the Effective Date. The date of cancellation is expected to be 27 January 2010. | ||
With effect from and including the Effective Date, share certificates in respect of the Hallin Shares will cease to be valid and should be destroyed. In addition, entitlements to Hallin Shares held within the CREST system will be cancelled on the Effective Date. | ||
As soon as possible after the Effective Date, it is intended that Hallin will be re-registered as a private limited company under the Isle of Man Companies Act 2006. | ||
17 | General | |
The Acquisition will be subject to the conditions and further terms set out in this announcement and to the further terms to be set out in the Scheme Document. The Scheme Document will include full details of the Scheme, together with notices of the Court Meeting and the Hallin EGM. | ||
The Acquisition will be governed by Isle of Man law and be subject to the applicable requirements of the Takeover Code, the Takeover Panel, the London Stock Exchange and the Financial Services Authority. | ||
The implications of the Scheme for persons not resident in the UK or the Isle of Man may be affected by the laws of the relevant jurisdiction. Any persons who are subject to the laws of any jurisdiction other than the UK or the Isle of Man should inform themselves about and observe any applicable requirements. | ||
Superior UK reserves the absolute right to elect, subject to the prior consent of the Takeover Panel, to implement the Proposals by way of a takeover offer in accordance with the Takeover Code as it may determine in its absolute discretion. In such event, such offer will be implemented on the same terms (subject to appropriate amendments, including (without limitation) an acceptance condition set at 90 per cent. (or such lesser percentage (being more than 50 per cent.) as the Offeror may decide or the Takeover Panel may require) of the Hallin Shares to which such offer would relate), so far as applicable, as those which would apply to the Scheme. Furthermore, if sufficient acceptances of such offer are received and/or sufficient Hallin Shares are otherwise acquired, it is the intention of the Offeror to apply the provisions of section 154 of the Isle of Man Companies Act 1931 to acquire compulsorily any outstanding Hallin Shares to which any such offer relates. | ||
In accordance with Rule 19.11 of the Takeover Code, a copy of this announcement will be published on the following websites: www.hallinmarine.com and www.superiorenergy.com/. |
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Press enquiries | ||
For further information contact: |
Superior | ||||
Robert Taylor | Tel: +1 (504) 587 7374 | |||
Westy Ballard | ||||
For investors / shareholders / media | ||||
Greg Rosenstein | Tel: +1 (504) 587 7374 | |||
Simmons & Company International | ||||
(Adviser to Superior & Superior UK) | Tel: +1 (713) 236 9999 | |||
Frederick W. Charlton | ||||
Paul R. Steier | ||||
Cenkos Securities plc | ||||
(Financial adviser to Superior & Superior UK) | Tel: +44 (0) 131 220 6939 | |||
Alan Stewart | ||||
Jon Fitzpatrick | ||||
Ken Fleming | ||||
Hallin | ||||
John Quinn (Director) | Tel: +44 (0)845 5191156 | |||
Blomfield Corporate Finance Limited | ||||
(Financial adviser to Hallin) | Tel: +44 (0)20 7444 0800 | |||
Ben Jeynes | ||||
Derek Crowhurst | ||||
Alan MacKenzie | ||||
Powerscourt Media Ltd | ||||
(Public relations adviser to Hallin) | Tel: +44 (0) 207 250 1446 | |||
Elizabeth Rous / Rob Greening |
Simmons & Company International, which is a member of the Financial Industry Regulatory Authority (an independent regulator for securities firms in the US) and the Securities Investor Protection Corporation, is acting exclusively for Superior and Superior UK in relation to the Acquisition. Simmons & Company International will not regard any other person as its client or be responsible to anyone other than Superior and Superior UK for providing the protections afforded to clients of Simmons & Company International nor for giving advice in relation to the Acquisition or any matter referred to in this announcement. | ||
Cenkos Securities plc, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial adviser exclusively for Superior and Superior UK in relation to the Acquisition. Cenkos Securities plc will not regard any other person as its client or be responsible to anyone other than Superior and Superior UK for providing the protections afforded to clients of Cenkos Securities plc nor for giving advice in relation to the Acquisition or any matter referred to in this announcement. | ||
Blomfield, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Hallin in relation to the Acquisition. Blomfield will not regard any other person as its client or be responsible to anyone other than Hallin for providing the protections |
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afforded to clients of Blomfield Corporate Finance Limited or for providing advice in relation to the Acquisition nor any other matter referred to in this announcement. | ||
This announcement is not an offer to sell or an invitation to purchase any securities or the solicitation of any vote or approval in any jurisdiction. Hallin Shareholders are advised to read carefully the formal documentation in relation to the Acquisition once it has been dispatched. | ||
Appendix I of this announcement contains a summary of the conditions and certain further terms of the Acquisition. Appendix II of this announcement contains details of the bases and sources of the financial information set out in this announcement. Appendix III of this announcement contains details of the irrevocable undertakings. Appendix IV of this announcement contains definitions of certain terms used in this announcement. | ||
The distribution of this announcement in jurisdictions other than the United Kingdom and the Isle of Man may be restricted by law and therefore any persons who are subject to the law of any jurisdiction other than the UK and the Isle of Man should inform themselves about, and observe, any applicable requirements. This announcement has been prepared for the purposes of complying with UK and Isle of Man law and the Takeover Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside of the United Kingdom and the Isle of Man. | ||
The Offeror may purchase Hallin Shares otherwise than under the Proposals, such as in the open market or privately negotiated purchases. Such purchases may be made either directly or through a broker and such purchases shall comply with the applicable laws of the United Kingdom and the Isle of Man, as well as the AIM Rules and the Takeover Code. Information about any such purchases will be available from a Regulatory Information Service. | ||
No statement in this announcement is intended as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per Hallin Share for current or future financial periods will necessarily match or exceed the historical or published earnings per Hallin Share. | ||
Neither the content of Superior or Hallins websites (or any other website) nor the content of any website accessible from hyperlinks on any such website is incorporated into, or forms part of, this announcement. | ||
Notice to US investors in Hallin | ||
The Proposals relate to the shares of an Isle of Man company, are subject to UK and Isle of Man disclosure requirements (which are different from those of the US) and are proposed to be made by means of a scheme of arrangement provided for under the Isle of Man Act Companies Act 1931, as amended. A transaction effected by means of a scheme of arrangement is not subject to the tender offer rules under the US Exchange Act. Accordingly, the Proposals are subject to the disclosure requirements and practices applicable in the UK and the Isle of Man to schemes of arrangement which differ from the disclosure requirements of the US tender offer rules. Financial information included in this announcement for Hallin has been prepared, unless specifically stated otherwise, in accordance with accounting standards applicable in the UK and the Isle of Man and thus may not be comparable to the financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the US. If the Offeror exercises its right to implement the acquisition by way of a takeover offer, the takeover offer will be made in compliance with applicable US laws and regulations. | ||
The receipt of cash pursuant to the Acquisition by a US holder of Hallin Shares as consideration for the transfer of its Hallin Shares pursuant to the Acquisition may be a taxable transaction for US federal income tax purposes and under applicable US state and local, as well as foreign and other tax |
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laws. Each holder of Hallin Shares is urged to consult his independent professional adviser immediately regarding the tax consequences of the Acquisition applicable to him. | ||
It may be difficult for US holders of Hallin Shares to enforce their rights and claims arising out of US federal securities laws, since Hallin is not located in the United States, and some or all of their officers and directors may be residents of countries other than the United States. US holders of Hallin Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US courts judgement. | ||
Dealing disclosure requirements | ||
Under the provisions of Rule 8.3 of the Takeover Code, if any person is, or becomes, interested (directly or indirectly) in 1 per cent. or more of any class of relevant securities of Hallin, all dealings in any relevant securities of Hallin (including by means of an option in respect of, or a derivative referenced to, any such relevant securities) must be publicly disclosed by no later than 3.30 p.m. (London time) on the Business Day following the date of the relevant transaction. This requirement will continue until the date on which the Proposals become effective, lapse or are otherwise withdrawn or on which the offer period otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an interest in relevant securities of Hallin, they will be deemed to be a single person for the purpose of Rule 8.3. | ||
Under the provisions of Rule 8.1 of the Takeover Code, all dealings in relevant securities of Hallin by the Offeror or Hallin, or by any of their respective associates, must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. | ||
A disclosure table, giving details of the companies in whose relevant securities dealings should be disclosed, and the number of such securities in issue, can be found on the Takeover Panels website at www.thetakeoverpanel.org.uk. | ||
Interests in securities arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in price of securities. In particular, a person will be treated as having an interest by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. | ||
Terms in quotation marks are defined in the Takeover Code, which can also be found on the Takeover Panels website. If you are in any doubt as to whether or not you are required to disclose a dealing under Rule 8, you should consult the Takeover Panel. | ||
Forward-looking statements | ||
Certain statements in this announcement constitute forward-looking statements. The forward-looking statements contained herein include statements about the expected effects of the Proposals, the expected timing and scope of the Proposals and other statements other than in relation to historical facts. Forward-looking statements include, without limitation, statements typically containing words such as intends, expects, anticipates, targets, estimates, believes, should, plans, will, expects and similar expressions or statements that are not historical facts are intended to identify those expressions or statements as forward-looking statements. These statements are based on the current expectations of the Offeror and Hallin and are naturally subject to uncertainty and changes in circumstances. By their nature, forward-looking statements involve risk and uncertainty and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. There are a number of factors that could cause actual results and |
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developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, the satisfaction or waiver of the conditions to the Proposals, local and global political and economic conditions, the price of oil, gas and other hydrocarbons, foreign exchange rate fluctuations and interest rate fluctuations (including those from any potential credit rating decline) and legal or regulatory developments and changes. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements. Neither the Offeror nor Hallin, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. Other than in accordance with their legal or regulatory obligations (including under the AIM Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Takeover Code), neither the Offeror nor Hallin is under any obligation and each of them expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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1 | The Acquisition will be conditional upon the Scheme becoming unconditional and becoming effective, subject to the Takeover Code, by not later than 31 May 2010 or such later date as Hallin and Superior UK may, with the consent of the Takeover Panel, agree and (if required) the Court may allow. | |
2 | The Scheme will be conditional upon: |
(a) | approval of the Scheme by a majority in number of those Hallin Shareholders who are present and vote either in person or by proxy at the Court Meeting and who represent 75 per cent. or more in value of all Hallin Shares held by such Hallin Shareholders; | ||
(b) | the Special Resolution set out in the notice of the EGM being duly passed by the requisite majority at the EGM and not subsequently revoked; and | ||
(c) | the sanction of the Scheme by the Court (in each case without modification or with modification as agreed by Superior UK and Hallin) and the delivery for registration of the Court Order to the Companies Registry of the Isle of Man Financial Supervision Commission (and, if required, registration of the Court Order by the Isle of Man Financial Supervision Commission). |
3 | Hallin and Superior UK have agreed that, subject as stated in paragraph 4 below, application to the Court to sanction the Scheme will not be made unless conditions 2(a) and (b) above have been fulfilled and unless immediately prior to the hearing of the claim to sanction the Scheme the following conditions (as amended if appropriate) are satisfied or waived as referred to below: |
(a) | it being established, in terms satisfactory to Superior UK, that the Office of Fair Trading in the United Kingdom does not intend to refer the Acquisition or any matter arising from the Acquisition to the Competition Commission for investigation, provided that, if a request to the European Commission is made by the competent authorities of one or more Member States under Article 22(1) of the Merger Regulation and is accepted by the European Commission, then this sub-paragraph shall be satisfied, if and only if: |
(i) | it is established, in terms satisfactory to Superior UK, that it is not the intention of the European Commission to initiate proceedings under Article 6(1)(c) of the Merger Regulation in respect of the proposed Acquisition; and | ||
(ii) | to the extent that the competent authorities of the United Kingdom retain jurisdiction over any aspect of the Acquisition, it is established, in terms satisfactory to Superior UK and in writing, that the Acquisition or any matter arising from the Acquisition will not be referred to the Competition Commission; |
(b) | the passing at one or more general meetings of Superior UK (or at any adjournment of any such meeting) of such resolution or resolutions as are required to approve, fund, implement and effect the Acquisition; |
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(c) | no relevant authority having intervened and there not continuing to be outstanding any statute, regulation, order or decision, that would or might reasonably: |
(i) | make the Acquisition, its implementation or the acquisition or proposed acquisition of any Hallin Shares by any member of the Superior Group void, illegal and/or unenforceable or directly or indirectly restrict, restrain, prohibit, delay or otherwise materially interfere with the implementation of, or impose additional material conditions or obligations with respect to, or otherwise materially challenge the Acquisition or the acquisition of any Hallin Shares or of control of Hallin by any member of the Superior Group; or | ||
(ii) | require, impede, delay or prevent the divestiture or alter the terms of any proposed divestiture, by any member of the Hallin Group or by any member of the Superior Group of all or any portion of their respective businesses (or any of them), assets or property or impose any limitation on the ability of any of them to conduct all or any part of their respective businesses or to own or continue to enjoy the benefits currently enjoyed in relation to their respective assets or property or any part of them in any such case to an extent which is material in the context of the Hallin Group or the Superior Group; or | ||
(iii) | impose any limitation on, or result in a delay in, the ability of any member of the Hallin Group or the Superior Group to acquire or to hold or effectively to exercise (whether directly or indirectly) all or any rights of ownership of shares or other securities (or the equivalent) in, or management control over, any member of the Hallin Group in any such case to an extent which is material in the context of the Hallin Group or the Superior Group; or | ||
(iv) | except as required pursuant to the Takeover Code, require any member of the Superior Group or the Hallin Group to acquire or offer to acquire any shares or other securities (or the equivalent) or interest in any member of the Hallin Group or the Superior Group owned by any third party (other than in the implementation of the Scheme); or | ||
(v) | require the divestiture by any member of the Superior Group of any shares or other securities in Hallin; or | ||
(vi) | impose any limitation on the ability of any member of the Hallin Group or the Superior Group to conduct, integrate or co-ordinate their respective businesses, or any part of them, with the businesses of any other member of the Hallin Group or the Superior Group in any such case to an extent which is material in the context of the Hallin Group or the Superior Group; or | ||
(vii) | result in any member of the Hallin Group or the Superior Group ceasing to be able to carry on business under a name under which it presently does so; or | ||
(viii) | otherwise materially and adversely affect the business, assets, financial position, profits or prospects of any member of the Superior Group or of any member of the Superior Group, |
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and all applicable waiting and other time periods during which any such relevant authority could intervene having expired, lapsed, or terminated; | |||
(d) | all necessary notifications and filings having been made to relevant authorities, clearances obtained from relevant authorities and all appropriate waiting and other time periods (including any extension of such waiting or other time periods) under any applicable legislation or regulations in any jurisdiction having expired, lapsed or been terminated and all authorisations necessary for or in respect of the Acquisition or the proposed acquisition of any shares or other securities in, or control of, Hallin by any member of the Superior Group, or the carrying on by any member of the Hallin Group or the Superior Group of its business having been obtained in terms and in a form satisfactory to Superior UK (acting reasonably), from all relevant authorities and all such authorisations remaining in full force and effect and there not having been received any notice or intimation of an intention to revoke, or not to renew, any of the same and all applicable statutory or regulatory obligations in any jurisdiction having been complied with in all material respects; | ||
(e) | save as disclosed on the face of the Hallin annual report and accounts for the year ended 31 December 2008 (Hallins financial results), the interim half yearly report for the six months ended 30 June 2009 (Hallins interim results), and/or as publicly announced by Hallin by notifying a Regulatory Information Service on or prior to 10 December 2009 (publicly announced) and/or as fairly disclosed in writing to Superior UK by or on behalf of Hallin (which shall include delivery of a copy of the relevant document to Superior UK) (Hallin Disclosure Letter) on or prior to 10 December 2009 (disclosed to Superior UK) there being no provision of any arrangement, agreement, licence, permit, franchise or other instrument to which any member of the Hallin Group is a party or by or to which any such member or any of its assets are or may be bound, entitled or subject and which, in consequence of the Acquisition or the proposed acquisition of any shares or other securities in, or control of, Hallin by Superior UK or any member of the Superior Group or because of a change in the control or management of any member of the Hallin Group or otherwise, would or might result in (to an extent which is material in the context of the Hallin Group): |
(i) | any monies borrowed by, or other indebtedness (actual or contingent) of, or grant available to any such member of the Hallin Group being or becoming repayable, or becoming capable of being declared repayable, immediately or prior to its stated maturity, or the ability of any such member to borrow monies or incur any indebtedness being withdrawn or inhibited or being capable of being withdrawn or materially inhibited; or | ||
(ii) | the creation or enforcement of any mortgage, charge or other security interest over the whole or any significant part of the business, property or assets of any such member of the Hallin Group, or any such mortgage, charge or other security interest (whenever arising or having arisen) becoming enforceable; or | ||
(iii) | any such arrangement, agreement, licence, permit, franchise or other instrument or the rights, liabilities, obligations or interests of any such member of the Hallin Group under any such arrangement, agreement, licence, permit, franchise or other instrument being terminated or modified adversely or affected adversely or any action being taken, or any obligation or liability arising thereunder; or |
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(iv) | any material assets or interests of any such member of the Hallin Group being or falling to be disposed of or charged or any right arising under which any such asset or interest could be required to be disposed of or charged; or | ||
(v) | any such member of the Hallin Group ceasing to be able to carry on business under any name which it presently does so; or | ||
(vi) | any liability of any member of the Hallin Group to make any severance, termination, bonus or other payment to any of the directors or the officers; or | ||
(vii) | the financial or trading position or prospects of the Hallin Group taken as a whole being prejudiced or adversely affected in any material way, |
and no event having occurred which, under any provision of any such arrangement, agreement, licence, permit, franchise or other instrument to which any member of the Hallin Group is a party or by or to which any such member or any of its assets is bound, entitled or subject will result in or give rise to any of the events or circumstances as are referred to in paragraphs (i) to (vii) of this paragraph (e); | |||
(f) | except as disclosed in Hallins financial results, Hallins interim results, and/or publicly announced and/or the Hallin Disclosure Letter, no member of the Hallin Group having, since 31 December 2008, otherwise than with the written agreement of Superior UK: |
(i) | issued or agreed to issue or authorised or proposed the issue of additional shares of any class, or of securities convertible into or exchangeable for, or rights, warrants or options to subscribe for or acquire, any such shares or convertible securities or transferred or sold any shares out of treasury (save as between Hallin and wholly-owned subsidiaries of Hallin and save for options granted, or the issue of any Hallin Shares upon exercise of options granted under the Hallin Share Plan prior to 31 December 2008); or | ||
(ii) | recommended, declared, paid or made or proposed to recommend, declare, pay or make any bonus, dividend or other distribution whether payable in cash or otherwise to Hallin Shareholders, except a distribution to a wholly-owned member of the Hallin Group; or | ||
(iii) | purchased, redeemed or repaid or announced any proposal to purchase, redeem or repay any of its own shares or other securities (whether or not convertible into shares) or reduced or made any other change to any part of its share capital; or | ||
(iv) | issued, authorised or proposed or announced the issue of any debentures or made, recognised or proposed or announced any change in its loan capital or, save in the ordinary course of business, incurred or increased any indebtedness or contingent liability or become subject to any contingent liability other than to a wholly-owned subsidiary of Hallin; or | ||
(v) | merged with or acquired any body corporate or acquired or disposed of or transferred, mortgaged or encumbered any material asset (including shares and trade investments) or any right, title or interest in any material |
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asset, or undertaken any material liability, other than in the ordinary course of business, or proposed or announced any intention to propose any such merger, acquisition, disposal, mortgage or encumbrance (in each case other than in the ordinary course of business); or | |||
(vi) | entered into or varied or authorised, proposed or announced its intention to enter into or vary any contract, transaction, arrangement or commitment (whether in respect of capital expenditure or otherwise) which might reasonably be considered to be of a long term, unduly onerous or unusual nature or magnitude or which might reasonably be considered to be materially restrictive on the business of any member of the Hallin Group or which involves or might reasonably be expected to involve an obligation of such a nature or magnitude or which is not in the ordinary course of business (including, without limitation, the acquisition or disposal of any interest in any undertaking or the implementation of any merger, demerger, reconstruction, scheme or amalgamation); or | ||
(vii) | taken any corporate action or had any legal proceedings instituted or threatened against it or any order made for its winding-up (voluntarily or otherwise), dissolution or reconstruction or amalgamation or scheme or reorganisation or any analogous procedures in any jurisdiction, or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer (or appointment of any analogous person in any jurisdiction) over all or any of its assets or revenues; or | ||
(viii) | entered into, or varied the terms of any contract, arrangement or commitment with any of the Hallin Directors or senior executives of any member of the Hallin Group; or | ||
(ix) | been unable, or having admitted in writing that it is unable to pay its debts or having stopped or suspended (or threatened to stop or suspend) payment of its debts generally or ceased or threatened to cease carrying on all or a substantial part of its business; or | ||
(x) | made or agreed or consented to any change to the terms of any trust deed constituting the pension scheme(s) established for its directors and/or employees and/or their dependants or to the benefits which accrue, or to the pensions which are payable thereunder, or to the basis on which qualification for or accrual or entitlement to such benefits or pensions are calculated or determined, or to the basis on which the liabilities of such pension schemes are funded or made, or agreed or consented to any change to the trustees involving the appointment of a trust corporation; or | ||
(xi) | made (other than in connection with the Scheme) any amendment to its memorandum or articles of association; or | ||
(xii) | waived or compromised or settled any claim otherwise than in the ordinary course of business; or | ||
(xiii) | proposed, agreed to provide or modified the terms of any share option or other benefit (including in relation to any personal defined contribution pension scheme(s) of any Hallin Director or any person employed by the Hallin Group) relating to the employment or termination of employment |
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(xiv) | except as between Hallin and its wholly-owned subsidiaries or between such wholly-owned subsidiaries made or authorised any material change in its loan capital; or | ||
(xv) | entered into any agreement, arrangement or commitment or passed any resolution or made any announcement or proposed or announced any intention, with respect to any of the transactions, matters or events referred to in this paragraph (f); |
(g) | except as disclosed in Hallins financial results, Hallins interim results, and/or as otherwise publicly announced since 31 December 2008 and/or the Hallin Disclosure Letter, since 31 December 2008: |
(i) | there having been no material adverse change in the business, assets, financial or trading position or profits or prospects of the Hallin Group taken as a whole; | ||
(ii) | there having been no litigation, arbitration proceedings, prosecution or other legal proceedings or investigation instituted, announced or threatened by or against or remaining outstanding in respect of any member of the Hallin Group (whether as plaintiff or defendant or otherwise) which in any such case is material in the context of the Hallin Group taken as a whole and no enquiry or investigation by or complaint or reference to any relevant authority or other investigative body against or in respect of any member of the Hallin Group having been threatened, announced, instituted or remaining outstanding against or in respect of any member of the Hallin Group which in any such case, would or might reasonably be expected to materially adversely affect the Hallin Group taken as a whole; | ||
(iii) | no contingent or other liability having arisen which would or might reasonably be expected to materially adversely affect the business of the Hallin Group, taken as a whole; and | ||
(iv) | no steps having been taken and no omissions having been made which are likely to result in the withdrawal, cancellation, termination or modification of any licence held by any member of the Hallin Group, which is necessary for the proper carrying on of its business and the withdrawal, cancellation, termination or modification of which is material in the context of the Hallin Group taken as a whole; |
(h) | Superior UK not having discovered that, save as publicly announced or otherwise disclosed to Superior UK: |
(i) | any financial or business or other information concerning the Hallin Group fairly disclosed in writing at any time by or on behalf of any member of the Hallin Group (whether publicly or otherwise) to Superior UK either contains a misrepresentation of fact or omits to state a material fact necessary to make the information contained therein not misleading, in either case, where the misrepresentation or omission is material in the context of the Hallin Group taken as a whole; or |
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(ii) | any member of the Hallin Group is subject to any liability, contingent or otherwise, other than such a liability incurred in the ordinary course of business, which is not disclosed in Hallins financial results or has not been publicly announced or otherwise disclosed to Superior UK and which is material in the context of the Hallin Group taken as a whole; or | ||
(iii) | there has been an emission, disposal, discharge, deposit, spillage or leak of waste or hazardous or harmful substances on or about or from any property now or previously owned, occupied or made use of by any past or present member of the Hallin Group which could give rise to any liability (whether actual or contingent) or cost on the part of any member of the Hallin Group which is or would be material in the context of the Hallin Group taken as a whole; or | ||
(iv) | that any past or present member of the Hallin Group has not complied with any applicable legislation or regulations of any jurisdiction with regard to the use, treatment, handling, storage, transport, release, disposal, discharge, spillage, leak or emission of any waste or hazardous substance or any substance likely to impair the environment or harm human health, or otherwise relating to environmental matters or the health and safety of any person, or that there has otherwise been any such use, treatment, handling, storage, transport, release, disposal, discharge, spillage, leak or emission (whether or not this constituted a non-compliance by any person with any legislation or regulations and wherever the same may have taken place) which in any case would be likely to give rise to any liability (whether actual or contingent) or cost on the part of any member of the Hallin Group which in any case is material in the context of the Hallin Group taken as a whole; | ||
(v) | circumstances exist whereby a person or class of persons would be likely to have any claim or claims in respect of any product or service provided by or carried out by any past or present member of the Hallin Group and which is material in the context of the Hallin Group taken as a whole; or | ||
(vi) | there is or is likely to be any liability (whether actual or contingent) or requirement of any past or present member of the Hallin Group to make good, repair, reinstate or clean up any property now or previously owned, occupied, made use of or harmed by any past or present member of the Hallin Group or any controlled waters under any environmental legislation, regulation, notice, circular, or order of any relevant authority or otherwise which is material in the context of the business of the Hallin Group taken as a whole. |
(i) | relevant authority means any government or governmental, quasi-governmental, supranational, statutory, regulatory or investigative body, court, trade agency, association, institution or professional or environmental body or any other regulatory body or person in any jurisdiction but excluding the Office of Fair Trading, the Competition Commission and the Pensions Regulator; | ||
(ii) | a relevant authority shall be regarded as having intervened if it has decided or intimated a decision to take, institute, implement or threaten any action, proceeding, suit, investigation, reference or enquiry, or made or enacted or proposed any statute, regulation, decision or order or taken any other steps and intervene shall be construed accordingly; and |
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(iii) | authorisations means authorisations, determinations, orders, grants, recognitions, confirmations, consents, licences, clearances, permissions, certificates and approvals. |
4 | Subject to the requirements of the Takeover Panel, Superior UK reserves the right to waive in whole or in part all or any of the conditions in this Appendix I except those at paragraphs 1, 2 or 3(a). Superior UK shall be under no obligation to waive or treat as fulfilled any of conditions 3(a) to 3(h) inclusive by a date earlier than the date specified in paragraph 1 above for the fulfilment thereof notwithstanding that the other conditions of the Acquisition may at such earlier date have been waived or fulfilled and that there are at such earlier date no circumstances indicating that any of such conditions may not be capable of fulfilment. |
5 | The Acquisition will lapse and the Scheme will not proceed if the Acquisition or any part of it is referred by the Office of Fair Trading to the Competition Commission before the date of the Court Meeting. |
6 | The Proposals will be conditional upon the Scheme becoming unconditional and becoming effective by no later than 31 May 2010, or such date (if any) as Superior UK may, with the consent of the Takeover Panel, agree and (if required) the Court may approve. |
7 | If Superior UK is required by the Takeover Panel to make an offer for Hallin Shares under the provisions of Rule 9 of the Takeover Code, Superior UK may make such alterations to the terms and conditions of the Acquisition as are necessary to comply with the provisions of that Rule, provided that the terms of the offer are not less beneficial to the Hallin Shareholders. |
8 | Superior UK reserves the right to elect to implement the Acquisition by way of a takeover offer. In such event, such offer will be implemented on the same terms (subject to appropriate amendments, including (without limitation) an acceptance condition set at 90 per cent. (or such lesser percentage (being more than 50 per cent.) as Superior UK may decide or the Takeover Panel may require) of the shares to which the offer relates), so far as applicable, as those which would apply to the Scheme. |
9 | Hallin Shares will be acquired by Superior UK fully paid and free from all liens, rights to set-off, counterclaims, equitable interests, charges, encumbrances and other third party rights of any nature whatsoever and together with all rights attaching to them, including the right to receive and retain all dividends and distributions (if any) declared, made or payable after the date of this announcement. |
10 | The Acquisition will be on the terms and will be subject, amongst other things, to the conditions which are set out in paragraphs 1, 2 and 3 of this Appendix I and those terms which will be set out in the Scheme Document and accompanying Forms of Proxy and such further terms as may be required to comply with the AIM Rules, the provisions of the Takeover Code and the provisions of the Isle of Man Companies Acts 1931 to 2004. The Scheme will be governed by the laws of the Isle of Man. |
11 | The availability of the Proposals to persons not resident in the United Kingdom or the Isle of Man may be affected by the laws of the relevant jurisdictions. Persons who are not resident in the United Kingdom or the Isle of Man should inform themselves about and observe any applicable requirement. |
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1 | Unless otherwise stated: |
(i) | the financial information and other information on Hallin included in this announcement has been extracted or derived, without material adjustment, from the audited consolidated financial statements or unaudited interim statements for Hallin for the relevant financial periods; and |
(ii) | the financial information and other information on the Superior Group has been extracted or derived, without material adjustment, from the audited consolidated financial statements or unaudited interim statements for Hallin for the relevant financial period and has been provided by the Superior UK Directors. |
2 | The value placed by the Acquisition on the existing issued and to be issued share capital of Hallin, and other statements made by reference to the existing issued and to be issued share capital of Hallin, are based on a fully-diluted Hallin share capital of 44,430,574 Hallin Shares, calculated as follows: |
(i) | 41,404,574 Hallin Shares outstanding, being the number of Hallin Shares in issue as at 10 December 2009, the last practicable date prior to this announcement; and | ||
(ii) | 3,026,000 Hallin Shares to be issued pursuant to options under the Hallin Share Plan outstanding as at 10 December 2009, the last practicable date prior to this announcement. |
3 | Unless otherwise stated, all historic share prices quoted for Hallin Shares have been sourced from the Daily Official List and represent Closing Prices for Hallin Shares on the relevant dates. |
4 | Information in relation to the average Closing Price per Hallin Share over the six-month period ended on 10 December 2009 is for the period from and including 10 June 2009 to and including 10 December 2009 (excluding UK public holidays). |
5 | An exchange rate of £1.00: US$1.626, being the exchange rate ruling as at close of business on 10 December 2009, the last practicable date prior to this announcement, has been used where appropriate. |
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Percentage of Hallins | ||||
existing issued ordinary | ||||
Number of Hallin Shares | share capital | |||
Antony Ebel |
570,000 | 1.4 | ||
John Giddens |
7,866,500 | 19.0 | ||
Anthony Prest |
105,000 | 0.3 | ||
John Quinn |
4,034,000 | 9.7 | ||
David Harris |
0 | 0 | ||
John Attenburrow |
475,000 | 1.3 | ||
Michael Arnold |
73,364 | 0.2 | ||
Sub-total |
13,123,864 | 31.7 |
Percentage of Hallins | ||||
existing issued ordinary share | ||||
Name | Number of Hallin Shares | capital | ||
Damor Investments
Limited |
5,000,000 | 12.1 | ||
Gresham House PLC |
3,700,000 | 8.9 | ||
Sub-total |
8,700,000 | 21.0 | ||
Grand Total |
21,823,864 | 52.7 |
(i) | Superior UK announcing, with the consent of the Takeover Panel, that it does not intend to make or proceed with the Acquisition and no new, revised or replacement offer or Scheme being announced by it in accordance with Rule 2.5 of the Takeover Code at the same time; and |
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(ii) | the Offer or Scheme lapsing or being withdrawn and no new, revised or replacement offer or Scheme having been announced by Superior UK in accordance with Rule 2.5 of the Takeover Code in its place or being announced in accordance with Rule 2.5 of the Takeover Code at the same time. |
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Acquisition
|
the proposed acquisition by Superior UK of the entire issued and to be issued share capital of Hallin | |
AIM
|
the AIM Market of the London Stock Exchange | |
AIM Rules
|
collectively the AIM Rules for Companies and the AIM Rules for Nominated Advisers published by the London Stock Exchange governing the admission of securities to trading on and the operations of AIM, as amended from time to time | |
Articles
|
the articles of association of Hallin from time to time | |
Blomfield
|
Blomfield Corporate Finance Limited of 100 Cannon Street, London, EC4N 6EU | |
Business Day
|
any day, other than a Saturday, Sunday or public holiday or bank holiday, on which banks are open for business in the City of London | |
Cenkos or Cenkos Securities plc
|
Cenkos Securities plc of 6.7.8 Tokenhouse Yard, London, EC2R 7AS | |
Closing Price
|
the closing middle market quotation of a Hallin Share as derived from the Daily Official List for that day | |
Companies Registry
|
the Companies Registry of the Financial Supervision Commission in the Isle of Man | |
Conditions
|
the Conditions to the implementation of the Acquisition set out in Appendix I of this announcement | |
Court
|
the High Court of Justice of the Isle of Man | |
Court Meeting
|
the meeting of Hallin Shareholders convened pursuant to an order of the Court pursuant to section 152 of the Isle of Man Companies Act 1931, as amended, for the purpose of considering and, if thought fit, approving the Scheme and any adjournment thereof | |
Court Order
|
the Scheme Court Order | |
CREST
|
the system enabling title to securities to be evidenced and transferred in dematerialised form operated by Euroclear UK & Ireland Limited | |
Daily Official List
|
the Daily Official List of the London Stock Exchange | |
Damor Investments Limited
|
Damor Investments Limited of La Motte Chambers, St Helier, Jersey |
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Effective Date | the day on which the Scheme becomes effective in accordance with its terms |
|||||
Exclusivity Period | from the period starting on the date of the Implementation Agreement and ending at midnight on 11 March 2010 | |||||
Financial Services Authority | the Financial Services Authority of the UK in its capacity as the competent authority for the purposes of Part VI of the FSMA | |||||
Forms of Proxy | the forms of proxy for use at the Court Meeting and the Hallin EGM | |||||
FSMA | the UK Financial Services and Markets Act 2000 (as amended) | |||||
Gresham House PLC | Gresham House PLC of 5 Princes Gate, London, SW7 1QJ | |||||
group | in connection with a legal entity, such entity, together with its subsidiary undertakings, its holding company and any fellow subsidiary undertakings of such a holding company | |||||
Hallin or the Company | Hallin Marine Subsea International plc, a company incorporated in the Isle of Man with registered number 107479C | |||||
Hallin Board | the board of directors of Hallin | |||||
Hallin Directors | the directors of Hallin | |||||
Hallin EGM | the extraordinary general meeting of Hallin, and any adjournment thereof | |||||
Hallin Group | the group comprising Hallin and its subsidiary undertakings | |||||
Hallin Share Plan | the Hallin Unapproved Share Option Plan | |||||
Hallin Shareholders | holders of Hallin Shares from time to time | |||||
Hallin Shares | the ordinary shares of 1p each in the capital of Hallin | |||||
Implementation Agreement | the implementation agreement dated 11 December 2009, between Superior UK, Superior and Hallin | |||||
Independent Competing Offer | (a) | either: | ||||
(i) | an offer or scheme of arrangement; or | |||||
(ii) | recapitalisation or other transaction, in each case involving a possible change of control of Hallin (that is, an acquisition of shares in Hallin carrying 30 per cent. or more of the voting rights of Hallin); or | |||||
(b) | the sale of all or a substantial proportion of the assets of any member of the Hallin Group, |
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and, in each case, which is made or entered into by a party which is not acting in concert with Superior UK (as such term is defined in the Takeover Code) | ||
Independent Competing Offer Announcement |
an announcement of a firm intention to make an Independent Competing Offer whether or not made pursuant to Rule 2.5 of the Takeover Code | |
London Stock Exchange
|
London Stock Exchange plc | |
Meetings
|
the Court Meeting and the Hallin EGM | |
Offer
|
the acquisition of the entire issued and to be issued ordinary share capital of Hallin by means of a takeover offer made pursuant to the Takeover Code | |
Offer Value
|
the price per Hallin Share that would be received by existing Hallin Shareholders if they accept the offer or any revised offer, multiplied by the issued share capital of Hallin having been fully diluted in respect of options and other rights to subscribe for such Hallin Shares which are in the money at the relevant time for the Hallin Shares (less the exercise price of those options or convertible securities) or such lower amount as prescribed under the Takeover Code | |
Proposals
|
the Scheme and other matters relevant thereto to be considered by the Hallin Shareholders at the Meetings | |
Regulatory Information Service
|
a regulatory information service that is on the list of regulatory information services maintained by the Financial Services Authority | |
Scheme Court Order
|
the order of the Court sanctioning the Scheme under section 152 of the Isle of Man Companies Act 1931 | |
Scheme Document
|
the document containing, inter alia, the terms and conditions of the Scheme, certain information about the Hallin Group and Superior UK, the Scheme and the notices convening the Meetings | |
Scheme or Scheme of Arrangement
|
the scheme of arrangement proposed to be made under section 152 of the Isle of Man Companies Act 1931, as amended, between Hallin and the holders of the Scheme Shares, with or subject to any modification, addition or condition approved or imposed by the Court and agreed to by Hallin and Superior UK | |
Scheme Record Time
|
11:59 p.m. (London time) on the date before the Court Meeting (or such other time and/or date as is agreed between Superior UK and Hallin) | |
Scheme Shareholders
|
registered holders of Scheme Shares | |
Scheme Shares
|
(i) the Hallin Shares in issue at the date of the Scheme |
34
Document; | ||||
(ii) | any Hallin Shares issued after the date of the Scheme Document and before the Voting Record Time; and | |||
(iii) | any Hallin Shares issued at or after the Voting Record Time and before 6:00 p.m. on the Business Day immediately prior to the Effective Date, in respect of which the original or any subsequent holders thereof are, or shall have agreed in writing to be, bound by the Scheme, | |||
in each case other than any Hallin Shares of which Superior UK is the registered holder | ||||
Simmons & Company International
|
Simmons & Company International of 700 Louisiana, Suite 1900, Houston, Texas 77002, US | |||
Special Resolution | the special resolution to be proposed at the Hallin EGM in connection with the Scheme | |||
Superior | Superior Energy Services, Inc., a company incorporated under Delaware law | |||
Superior Group | the group comprising Superior UK, its holding company, any subsidiaries of its holding company, its ultimate parent company, its subsidiary undertakings and, where the context permits, each of them | |||
Superior UK or Offeror | Superior Energy Services (UK) Limited, a company incorporated in Scotland with registered number SC366014 | |||
Superior UK Board | the board of directors of Superior UK | |||
Superior UK Directors | the directors of Superior UK | |||
Takeover Code | the City Code on Takeovers and Mergers | |||
Takeover Panel | the Panel on Takeovers and Mergers | |||
United Kingdom or UK | the United Kingdom of Great Britain and Northern Ireland | |||
United States or US | the United States of America, its territories and possession, any state of the United States of America and the District of Columbia | |||
US Exchange Act | the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder | |||
US$ or dollars | US dollars, the lawful currency of the United States of America | |||
Voting Record Time | 6:00 p.m. (London time) on the day which is two days before the date of the Court Meeting or, if such Court Meeting is adjourned, 6:00 p.m. on the second day before the day of such adjourned meeting | |||
£ | UK pounds sterling, the lawful currency of the UK |
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