STX OSV

STX OSV: Timeline schedule of events: 21 Dec 2012: Fincantieri offered $1.22/ share to STX Europe, for 50.75% stake in STX OSV; 23 Jan 2013 (T): Fincantieri has completed the 50.75% acquisition from STX Europe, Mandatory cash offer was made; 28 Jan 2013: STX OSV appointed EY as its Independent Financial Adviser (IFA) 6 Feb 2013 (T+14) - 13 Feb 2013 (T+21): Offer Document to be published (X) 20 Feb 2013 - 27 Feb 2013 (within 2 weeks of X): IFA to publish recommendation to shareholders; 6 Mar 2013 - 13 Mar 2013 (X+28): Offer of $1.22/ share close Downside risk: Current price of $1.25 implies downside risk of 2.4% based on the Offer Price of $1.22. Upside: 1) an increase in Offer Price by Fincantieri,if the Group intends to take Company private; 2) re-rating of current discount on STX OSV valuation of 4.6x P/E vs peers of 8-16x. Do note that STX OSV is considered a higher tier O&M shipbuilder with a niche clientele, and peers like Ezion, Swiber, Keppel or SembMarine would not be exactly comparable. However, do note that OZ Fund who previously owned 12% stake acquired at $1.33/ share was sold over the period from 21 Dec 2012 at prices below the price they acquired at. OZ Fund currently owns 8.93% as at 31 Jan 2013.