Wärtsilä confirmed that it is in advanced discussions with Hamworthy regarding a 825 pence per ordinary share cash offer.
The potential offer is likely to assume that no further dividend will be paid but, if a dividend is paid, Wärtsilä’s offer will be reduced by the amount of that dividend.
The Board of Wärtsilä believes that the combination would create an exciting platform in the offshore, marine gas and environmental solutions markets creating long-term growth to the benefit of shareholders, customers, and employees alike.
Wärtsilä has strategically developed its Ship Power division in recent years beyond the traditional engine technology to encompass ancillary equipment and systems to be able to provide customers with more value added marine solutions.
Hamworthy would extend that strategy by offering excellent technology in strong market positions, on which Wärtsilä could leverage its international sales and service network.
Wärtsilä believes that the combined resource and competence base would improve the potential in the Offshore markets, help to capture a bigger share of the growing marine gas application market as well as create a stronger position within the rapidly evolving environmental solutions markets.
The combination of Wärtsilä and Hamworthy would deliver benefits to both businesses’ current and future customers and stakeholders.
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LNG World News, November 18, 2011; Image: Hamworthy