Technip talks up CGG bidNews // November 21, 2014
Technip has confirmed that, on Monday 10 November 2014, it approached CGG to create a first tier oil and gas services provider.
The proposed transaction would take the form of a public tender offer in cash for CGG’s shares at a price of 8.30 euros per share.
Technip would like to enter into a constructive dialogue with CGG’s Board of Directors concerning its project that provides a strong strategic and industrial logic.
"This industrial logic involves the integration and development of CGG’s reservoir and data processing and seismic equipment activities within Technip," said Technip in a statement.
"This combination would create a unique value proposition in our industry, offering technology, engineering, equipment and project management from the reservoir across the entire production system.
"Technip would be ideally positioned to best address its clients’ increasingly complex cost and project challenges."
As part of this project, Technip would reinforce and then separate the acquisition division of CGG.
Technip said it is confident that its project can be completed under conditions that create value for its shareholders, while maintaining a strong balance sheet and its current credit rating, but said it was unable to indicate at this stage whether such transaction will occur.