Coflexip's board recommends improved Technip offerNews // July 27, 2001
At the meeting of the Board of Directors, a Special Committee, createdon 06 July, reported on its deliberations, and highlighted the fact that Technip's offer was made in the context of a coherent industrial strategy, in line with the expectations of its market, the investment made by Technip in April 2000 and the strategic alliance created at the time of the investment.
The Special Committee of Coflexip's Board of Directors concluded that the terms of the improved offer made to Coflexip's shareholders were adequate and therefore recommended to Coflexip's Board that it approve Technip's offer. After receiving the reportof the Special Committee, Coflexip's Board of Directors unanimously agreed to recommend to Coflexip's shareholders that theytender their shares to Technip's offer, as modified.
The strategy of the future Group will be focused on the strong growth in the offshore market and will target, in the medium term a 50/50 revenue breakdown between offshore activities and other activities. The combined Group will, in particular, maintainan offshore investment policy in line with that followed by CSO in recent years and consistent with the objective to grow its offshore activities. Special attention will be given to the strong growth of investments in onshore developments, gas and gas-related industries, particularly in the Middle East. The Group will seek to increase the share of its activity in the non-petroleum sector, with a target of 15-20 per cent of revenues in this area.
In the offshore sector of the business, the business sector headed by Tom Ehret will integrate Technip's offshore team with Coflexip Stena Offshore's team.
Pierre Marie Valentin, Chairman and Chief Executive Officer of the Coflexip Stena Offshore Group, said: "We welcome with optimism the plan to combine Technip and Coflexip, the logical culmination of the steps taken last year in the framework of the strategic alliance between our two Groups".
Tom Ehret, Chief Operating Officer Operations of the Coflexip Stena Offshore Group, added: "The growth of our industry in years to come, especially in deep water areas, requires a broad skill base able to support a global approach to solving field development problems worldwide. The new Group resulting from the Technip-CSO combination, with its best-in-class capabilities in offshore deepwater field development, its turnkey project management and process engineering skills, and its assets and proprietaryproducts, will set a new standard for the worldwide oil and gas services business."