McDermott International Shares Key Outcomes from Special General Meeting of Members

On December 3, 2024, McDermott International, Ltd announced the results from their Special General Meeting held virtually on December 2, 2024. The meeting was pivotal for the company, especially in light of the proposed amendments and the restructuring of share capital.

During this Special General Meeting, a significant resolution was passed to approve an increase in authorized share capital, changing it from $2,400,000 to $12,100,000. This move is seen as a strategic step to enhance the company’s financial stability and operational capabilities. In addition to this adjustment, members voted in favor of consolidating the issued Class A Ordinary Shares. This consolidation will occur at a ratio ranging between 25-to-1 and 250-to-1, with the precise ratio to be decided by the Board based on future evaluations. Such restructuring is aimed at optimizing the company’s stock structure for better liquidity and investor appeal.

Moreover, an amendment to the Company’s Amended and Restated Bye-Laws was approved, increasing the par value of both Class A and Class B Ordinary Shares, proportionate to the share capital consolidation. Approximately 76% of the outstanding Class A Shares participated in the vote, with over 93% of those present supporting the proposed changes, indicating a robust consensus among the members.

These decisions are closely tied to the company’s previously announced plan involving the redemption and exchange of Series A Preference Shares for Class A Ordinary Shares—a process referred to as the Preference Share Transaction—followed by the share consolidation. This transaction is expected not only to streamline McDermott's capital but also to advance its efforts in driving the stock's market value upward.

Alongside these changes, McDermott will continue to liaise with investors and the market as it navigates through these adjustments. The company’s Vice President and Treasurer, Kevin Leader, along with the Senior Director of Global Communications and Marketing, Reba Reid, are available for inquiries, ensuring transparency and open channels of communication with stakeholders.

As McDermott looks forward, the results from this Special General Meeting mark a transformational point for the corporation. The changes aimed at refining the company's share structure are expected to attract more investors and potentially increase the liquidity of the shares in the market. However, as with any forward-looking initiative, there are inherent risks and uncertainties involved. Market fluctuations, investor sentiments, and economic conditions are all crucial factors that could impact the success of the company's proposed strategies. McDermott remains committed to keeping its stakeholders informed about progress and any potential shifts in direction arising from market reactions.

In summary, the latest developments at McDermott International demonstrate proactive management's commitment to long-term growth and adaptation. Stakeholders are encouraged to monitor the impacts of these decisions as they unfold, offering insight into the company’s strategic direction in an ever-evolving marketplace.