The entire international Offshore Support Vessel (OSV) industry has been hit hard by the collapse in oil prices and resultant decline in oil and gas expenditure.
With the ongoing support of its lenders, MMA Offshore has been confronting these challenges by cutting costs, repaying debt and rationalising its non-core assets (including its Dampier Supply Base) to focus on the market segments where MMA Offshore is expected to generate the most value over time.
Our focus has been on securing MMA Offshore's financial position to ensure that ALL shareholders have the opportunity to participate in the market recovery which general industry consensus suggests is now underway.
That is why the MMA Offshore Board has recommend shareholders vote against a Resolutions proposed by Halom Investments Pte Ltd (Halom), a substantial shareholder of MMA, that seeks to remove Managing Director, Jeff Weber and Chairman, Tony Howarth from the Board of Directors at MMA’s upcoming AGM, and replace 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. These 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.