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Bona Shipholding finally acquires last shares of Smedvig

Bona Shipholding Ltd. said yesterday it had finally got the last six tenths of the last one percent of shares in Smedvig Tankships Ltd., nearly three months after a corporate coup in which Bona suddenly assumed controlling ownership of Smedvig.

Bona said it now owns Smedvig in full. The hostile $152-million takeover began eleven weeks ago after the two companies suspended formal merger talks.

Later, though the Smedvig family appeared to initially oppose the takeover, it was already too late.

On October 8, Bona bought up two thirds of Smedvig shares, apparently without the knowledge of Mr. Peter Smedvig, who represented the Smedvig family's interest. Bona did this by paying a premium price of $8 a share, above the $6.40 at which the shares were valued.

Smedvig, owner and operator of crude oil carriers, and Bona, the tanker arm of Norwegian ship owner Leif Hoegh, are both Bermuda-registered companies.

Still in October, Bona acquired a further 10 percent of the shares, bringing their Smedvig holdings to 75.7 percent of the shares. And in early November, the Smedvig family sold their 21.1 percent stake to Bona.

Yesterday, executives said that they were satisfied with the condition of the vessels in Smedvig's fleet and no major unforeseen issues had arisen.

The Smedvig Tankships activities in London and Stavanger are being progressively transferred to Bona's offices in Oslo. The process should be completed by next April.

The company also said its acquisition of Smedvig had been positively received by both companies' major customers, financial institutions and suppliers.

Bona was particularly pleased to report that Smedvig's joint venture relationship with Soponata will continue unaffected by the acquisition.

Smedvig was incorporated in Bermuda in April 1993, and acquired the integrated shipping interests of the Smedvig family, which date back to 1915.

An international IPO was completed in June 1993, raising $138 million. But since then, Smedvig has lost $32.2 million.

Smedvig brings to Bona a fleet of 11 crude oil carriers, three of which are 50 percent owned under a joint venture with Soponata of Portugal.

The takeover creates a major medium-sized tanker and OBO group with a fleet of about 27 owned vessels worth about $680 million and annual time charter revenues of $100-$150 million.