Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised

Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised
By bne IntelliNews January 11, 2018

The Romanian government is committed to taking over a 51% stake in Mangalia shipyards from Daewoo and revive the yard by producing military ships, Prime Minister Mihai Tudose said on January 10 in an interview with Antena3 TV station. 

Daewoo has already entered into an agreement to sell the majority stake in the troubled shipyard to Damen group after the other shareholder (state-owned May 2 Mangalia shipyard with 49%) abstained from exerting its pre-emptive rights. However, the government has since sent a letter to Daewoo asking to take over the 51% stake, Bursa daily reported.

“I’m telling you, we are buying it and we will have a state-owned shipyard,” Tudose said, however. He argued in favour of the state as an active player in the economy.

Damen Shipyards Group announced in November it had entered into a share purchase agreement with Daewoo Shipbuilding & Marine Engineering (DSME) to acquire its majority share in Daewoo Mangalia Heavy Industries (DMHI) in Mangalia. In December, state-owned May 2 Mangalia shipyard’s general shareholders’ meeting abstained from exerting the pre-emptive rights. 

The government had not commented on its plans in regard to Mangalia shipyards before Tudose’s statements on January 10.

Damen already owns a shipyard in Romania, in Galati on the banks of the river Danube, which is currently the group’s largest shipyard. As such, the takeover of the Mangalia shipyard would have represented a strategic complement to Damen’s current shipyard portfolio.

The deal was announced this summer, and the Romanian competition authorities have already approved the transaction. The terms of the deal were not disclosed, but the price was hinted at being in the range of $40mn-$70mn.

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