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    CGGVeritas launches 414 million rights offering

    Company News // September 27, 2012

    CGGVeritas announced on 24 September that it had entered into an agreement with the Dutch group Fugro to acquire the businesses of its geoscience division (excluding multi-clients library and OBN businesses) for a price of 1.2 billion Euros, and that it plans to establish a joint venture specialising in ocean bottom seismic data acquisition.

    To fund the acquisition, CGGVeritas is launching a capital increase via an offering of preferential subscription rights to existing shareholders for a gross amount of approximately 414 million.

    The net proceeds of the issuance will be used to pay a portion of the acquisition price for the geoscience division.

    The remainder of the acquisition price will be (i) paid by way of set-off of 225 million from Fugro representing the excess value of CGGVeritas contribution to the Seabed Joint Venture and (ii) paid with the proceeds of debt financing, in the form of convertible or non-convertible bond issuances and/or bank loans (CGGVeritas benefits from a bridge credit facility commitment of up to 700 million).

    The completion of the acquisition is subject to certain customary conditions precedent for this type of transaction, in particular the approval of competition authorities, and the signing of the agreement establishing the seabed joint venture.



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