The Dividend Reveal
In a bold move, GC Rieber Shipping, a Norwegian company, has announced its intention to distribute its 8.5% stake in Shearwater Geoservices, an offshore seismic firm, to its investors. The proposed extraordinary dividend distribution comprises 5 million shares. To implement this plan, GC Rieber will distribute one share in Shearwater for every 17.22 shares owned in the company, a move that will be rounded down to the nearest whole number.
For those shareholders who are affected by this rounding down, the company has pledged to compensate them in cash based on the fair value of Shearwater shares on the day of the transfer. GC Rieber has made it clear that at present, the estimated fair value stands at NOK109 per share, totaling around $50.six million.
August Approval Process
Set for an August showdown, the proposal’s fate will transpire at the general meeting this year. It’s worth noting that Shearwater Geoservices came into existence in 2016 as a joint venture between GC Rieber Shipping and Rasmussengruppen. Since then, it has become the top seismic vessel player, with SLB, previously Schlumberger, functioning as its primary shareholder.
Honing in on Core Activities
GC Rieber made waves in July 2021 when it reduced its ownership in the Bergen-based firm by half. Simultaneously, it diversified its portfolio in October by committing to the construction of up to four wind service operation vessels at Turkey’s Cemre shipyard. The first delivery is expected in early 2025.
In an official statement filed with the Oslo stock exchange, GC Rieber’s board of directors revealed their forward-thinking approach. They expressed their desire to focus on the company’s core activities to seize opportunities in the market more effectively.
The Future of Seismic Investment
This seismic shift in investment strategy showcases GC Rieber Shipping’s commitment to its shareholders and the company’s determination to consolidate its core competencies. By transferring its stake in Shearwater Geoservices and simultaneously pursuing growth opportunities in the wind service operation sector, the Norwegian shipowner aims to provide its investors with security and long-term value.
This masterstroke demonstrates how creative strategies can revolutionize a company’s perception among investors and within the market. In this new era of offshore shipping, GC Rieber’s well-timed share transfer could very well serve as an example for its competitors while exciting the interest of potential investors and stakeholders.
