CMB.TECH (CMBT, Financial) and Golden Ocean Group (GOGL) have unveiled plans to merge, creating a significant shift in their corporate structure. The proposed merger will see Golden Ocean integrating into CMB.TECH Bermuda, a full subsidiary of CMB.TECH. Under the deal, each Golden Ocean share will be exchanged for 0.95 shares of CMB.TECH, subject to standard adjustments.
This merger plan has received the green light from the boards of both companies, with Golden Ocean's board also securing a fairness opinion from financial advisor DNB Markets, which is part of DNB Bank ASA. This opinion confirmed that the exchange ratio is fair to Golden Ocean's shareholders from a financial perspective. The transaction will result in the cancellation of existing Golden Ocean shares not owned by CMB.TECH, which will then be swapped for newly issued CMB.TECH shares at the agreed exchange ratio.
Upon closure of the deal, CMB.TECH will issue approximately 95,952,934 new shares, leaving CMB.TECH shareholders with around 70% ownership of the newly combined entity, while Golden Ocean shareholders will hold the remaining 30%, assuming no adjustments are made to the exchange ratio. Alongside the merger, Golden Ocean plans to delist from both NASDAQ and the Euronext Oslo Bors, with CMB.TECH maintaining its listings on the NYSE and Euronext Brussels, and pursuing a secondary listing on Euronext Oslo Bors post-merger.
The companies aim to finalize definitive transaction agreements by the second quarter and complete the merger in the third quarter. However, shareholders should note that these timelines and terms might change, and there are no guarantees that definitive agreements will be reached.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for CMB.Tech NV (CMBT, Financial) is $19.34 with a high estimate of $22.00 and a low estimate of $18.00. The average target implies an upside of 118.06% from the current price of $8.87. More detailed estimate data can be found on the CMB.Tech NV (CMBT) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, CMB.Tech NV's (CMBT, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CMB.Tech NV (CMBT, Financial) in one year is $17.41, suggesting a upside of 96.28% from the current price of $8.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CMB.Tech NV (CMBT) Summary page.
