4th Mar 2019 15:39
LONDON (Alliance News) - Gulf Marine Services PLC on Monday insisted that a statement by 14% shareholder Seafox International Ltd is inaccurate and shows a lack of understanding of Gulf Marine's business.
Shares in Gulf Marine, which provides support vehicles for the offshore oil, gas, and renewable energy sectors, were down 6.6% at 17.10 pence on Monday.
Seafox has been attempting to remove Gulf Marine Chair Simon Heale from the board and replace him with former News International and current Times Newspapers Chair Andrew Knight.
However, since Heale has now resigned, Seafox removed its motion to appoint Knight on Friday last week. Seafox still believes Knight should be considered as a chair candidate.
In the same statement in which it withdrew its motion to appoint Knight, Seafox also outlined other plans for Gulf Marine, including a "full overhaul of the board" that would see Emirates Insurance Co Chair Abdullah Mazrui and investment banker Hisham Halbouny join the board as non-executive directors.
Also in its statement, Seafox criticized Gulf Marine's financial position, saying: "Gulf Marine stated 2019 earnings before interest, tax, depreciation, and amortisation will stay at around USD69 million and there is no market recovery in sight. With an estimated USD30 million interest, capital expenditure and tax of USD13 million, this leaves approximately USD17 million to deleverage a USD380 million debt...this is unacceptable for shareholders."
Responding to this, Gulf Marine said: "The Seafox statement contains numerous inaccuracies, displays a lack of understanding of GM's business and contains nothing to suggest that the Seafox nominees would be additive to the company's governance."
Gulf Marine went on to say that it is focusing on a plan to address its governance, capital structure, and operational performance and has consulted with shareholders on this. More information on this plan will be revealed "in the near future".
"The board continues to believe that the Seafox requisition has caused unnecessary expense, uncertainty and disruption to the operations of the business at a critical time," Gulf Marine said.
Alongside the issues with Seafox, Gulf Marine also has received letters requesting that the founder of Ithmar Capital Partners Ltd, Faisal Bin Juma Belhoul, be appointed to its board. A letter was received from Ithmar, as well as other shareholders who hold a more than 5% stake in Gulf Marine.
"The board continues to recommend that shareholders vote against all of the Seafox and Ithmar resolutions" at the extraordinary general meeting, Gulf Marine said.
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