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Songa Offshore ASA (OSL:SONG) Reference is made to the press release dated 16 October "Completed Private Placement and Planned Subsequent Offering", in which the Company informed that the Board of Directors had resolved to conduct a subsequent repair offering to the shareholders in Songa who were not invited to participate in the private placement. The repair offering was indicated to amount to approximately 7,400,000 shares. Furthermore reference is made to the press release dated 17 October "Financial Update".
Additionally reference is made to a press release and subsequent webcast where it was announced that the subsequent offering was "likely to be dropped". The background for the announced subsequent offering was that the offer price in the private placement was NOK 25 per share compared to the closing price on 15 October of NOK 37.60, and therefore the Board wished to offer the shareholders who were not invited to participate in the private placement shares at what was perceived to be a discount at the time, i.e. compared to close the previous trading day. This was to secure equal treatment of shareholders.
During the subsequent 3 days of trading after the private placement, the Company`s shares have been trading at significant volumes and at prices ranging from NOK 15.90 and NOK 25.70.
Against this background, the Board has concluded that there has been ample time and opportunities for all shareholders (including those eligible to participate in a repair offering) to repair and rectify any perceived dilution as a result of the private placement. The Board has therefore decided to cancel the subsequent offering.
Oslo, 2008-10-20
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