MMA Offshore has been pursuing a clear strategic plan to respond to the downturn in the offshore vessel market over the past three years.
As outlined in the Pareto Securities Report, “Analysis of Certain Halom assertions”, dated 27 October 2017:
Halom Investments Pte Ltd (Halom), a substantial shareholder of MMA, has requisitioned resolutions seeking to remove Managing Director, Jeff Weber and Chairman, Tony Howarth from the Board of Directors at MMA’s upcoming AGM, replacing them with two directors nominated by Halom, Mr Jeffrey Mews and Mr Ajaib Hari Dass.
The Board is concerned that, through its proposed changes to the composition of the Board and its plan to appoint a new CEO, Halom would obtain disproportionate representation on the MMA Board (relative to its shareholding), which could position it to potentially seek to exert disproportionate influence over the strategic direction of the Company. Further, such changes could destabilise the strong relationships the Company currently enjoys with its clients and its lenders which are crucial to the successful continuation of the recovery strategy in place.
As noted in an article in The West Australian newspaper, MMA had previously received a recapitalisation proposal from Halom (through its advisors Moelis & Company). The recapitalisation proposal was not supported by the Board on the basis that it was considered to not be in the best interests of the Company and all of its shareholders at the time.
MMA is actively considering the structure and timing of a potential equity raising, coupled with amended and extended debt facilities, to ensure the best possible outcome for ALL shareholders.