A proposed $130 million purchase of Seattle's Todd Shipyards by Oregon-based Vigor Industries has hit some minor turbulence.
Shareholders of Todd had until January 28 to tender shares to Vigor for purchase at $22.27 each. However, under the terms of the agreement approved by the Todd board, Vigor needed to obtain a minimum of 67 percent of the outstanding shares before moving forward with the purchase.
By the expiration of the tender offer on Jan. 28, Vigor had amassed 2.9 million shares, or 50.7 percent of the outstanding shares. The firm has now extended the tender offer until February 4.
Vigor officials downplayed the situation as a show of reluctance on shareholders' part, saying instead that it was likely due to several large block shareholders hoping to get more money per share by waiting. However, as of Feb. 3, the Todd price per share was still slightly below the Vigor tender offer and has not risen above the $22.27 offered since Jan. 25.
If Vigor fails to reach the 67 percent minimum, the firm plans to call a vote of the shareholders.
Vigor plans to take Todd private if the deal is approved and combine the two firms.
The Todd board of directors unanimously approved the Vigor agreement in December 2010. Todd’s directors and officers and certain other stockholders who own an aggregate of approximately 15.3 percent of Todd’s outstanding stock also entered into agreements at the time pursuant to which they agreed to transfer their Todd shares to Vigor and to vote their shares in favor of a merger if a vote is taken.
Last month, Vigor obtained antitrust approval from the federal government to move forward with the Todd purchase.