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Fugro reportedly selling their entire subsea division

Precise look at Fugro and how they are reportedly selling their entire subsea division.

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Methinks they doth protest too much..

Another share purchase, another takeover denial but when will Boskalis stop buying pieces of Fugro if it doesn’t want to own it? That’s the question analysts are asking after the world’s largest owner of dredging fleet made a second increase in the oil services company’s shares in less than three months, and now owns just over 20%.

For its part Fugro isn’t interested in any takeover. It’s repeatedly said advances by Boskalis are “unsolicited” and “unexpected”.

To attempt to defend itself against any such move, Fugro has been trying to sell off its subsea division. It said in November it was, “interested to discuss a partnership with respect to its subsea division with possibly interested parties, including Boskalis,” but stressed remaining independent was “core” to its strategy.

But holding onto that independence is not easy in the current climate. Fugro is not doing well in a market of low oil prices, margin pressure and an over-leveraged balance sheet.

That means Boskalis has the chance to move in while prices are low, something the multinational banking and financial services corporation ING spotted also, saying Boskalis is in the perfect position to buy up Fugro and all its admirable assets at a “steep discount”.

In October last year the company had to scrap its 2014 dividend as a result of growing pressure on profits. It will be interesting to see what happens after the annual results are announced on February 27th..