The overwhelming approval of shareholders to merge NZX-listed Mooring Systems with its European licence holder Cavotec will secure the future of the company, says chief executive Peter Montgomery.
More than nine million share votes out of 12.7 million were cast at yesterday's meeting in Christchurch, with 99 per cent approving
the deal.
"I think it's a great result for the company, for the shareholders, for the staff and for our customers," Montgomery said.
Mooring Systems will issue 50.9 million new shares to Cavotec shareholders, giving them an 80 per cent holding in the merged company - which will be based in Christchurch, listed on the NZX and called Cavotec MSL Holdings.
The 65 shareholders of private, Netherlands-based Cavotec have already approved the deal.
The merger would raise Mooring Systems' international profile and increase access to distribution channels and to capital for research and development, Montgomery said.
"We always were very thinly capitalised. And it doesn't take much in that circumstance if something goes wrong ... to affect your cash position."
The merger received a mixed reaction from investors when announced last month.
"I put this down to people getting familiar with Cavotec, coming to terms with the transaction itself. It took time for people to absorb it and become comfortable with it," Montgomery said.
Montgomery - the largest Mooring stakeholder with 18.9 per cent - spoke to about 300 shareholders before the vote.
Mooring Systems' share price had fallen steadily from $4.15 since the merger was mooted last month with an accounting valuation of $3.72 a share.
However, in recent days the share price began to climb again and closed up 15c yesterday at $4.30.
ABN Amro Craigs analyst Selwyn Blinkhorne said a fairly conservative valuation of the merged group was probably a little over $4 a share.
"I thought that was quite conservative based on the Cavotec earnings and given the valuation that the market has previously placed on Mooring Systems," Blinkhorne said.
