Schlumberger makes cash offer for Eastern EchoNews // November 6, 2007
Schlumberg has made a cash offer for Eastern Echo.
Schlumberger has announced that it is offering to acquire all outstanding shares, convertibles and warrants in Eastern Echo Holding Plc, the Cyprus-registered company quoted on the Oslo Axess Market under the ticker symbol "ECHO".
The offer price is set at a minimum of NKr 11 and a maximum of NKr 12 per share, with the final price dependent on the acceptance level achieved under the offer. The offer values the equity of Eastern Echo on a fully diluted basis at approximately NKr 3,672 million based on NKr 12 per share.
Schlumberger already holds an irrevocable pre-acceptance from the largest Eastern Echo shareholder holding 14.4 per cent of the issued Eastern Echo shares, and owns a further 24.6 per cent of the shares together with 45.8 per cent of the total Eastern Echo convertible bonds.
In total Schlumberger controls approximately 39 per cent of the Eastern Echo share capital, which corresponds to approximately 35.1 per cent on a fully diluted basis.
Eastern Echo, established in 2006, has a total of four high-performance 3-D seismic vessels being built in Spain, two scheduled for construction in Dubai, and holds options for two further vessels.
Commenting on the offer, Andrew Gould, Schlumberger Chairman and CEO said: "The potential acquisition of Eastern Echo will further boost our plans to meet continuing substantial demand for WesternGeco Q-Marine seismic technology services."
The offer price reflects the potential synergies the Eastern Echo vessels and management may offer when combined with Schlumberger seismic markets and technology.
Furthermore, Schlumberger, through its WesternGeco business segment, possesses the operational and marine management capabilities that secure the required organizational resources to deploy and manage the vessels upon delivery.