French oil services provider Technip has announced that, on Monday, November 10, 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.
This industrial logic involves the integration and development of CGG’s reservoir and data processing and seismic equipment activities within Technip.
Technip said that it 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 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. Given the intrinsic strengths of this division and its people, Technip expects this business to become a sustainable leader in a sector that has its own characteristics.”
“Technip 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,” stated the company.
However, Technip also said that it is unable to indicate at this stage whether such transaction will occur.
CGG confirmed having been approached by Technip in an unsolicited manner in respect of a potential combination, and according to the company, “the conditions to pursue were not met.”