TechnipFMC, a global leader in the energy industry, has announced the sale of 25 million shares within its engineering and technology arm Technip Energies through a private placement by way of an accelerated bookbuild offering.
This represents about 14% of Technip Energies’ share capital. The sale price of the stake in the placement has been set at €11.10 ($13.41) per share, yielding total gross proceeds of €277.5 million.
Concurrently with the placement, Technip Energies will purchase from TechnipFMC a total of 1.8 million shares (equivalent to 1% of share capital) at €11.10 per share, corresponding to the price of the placement, said the company in a statement.
This purchase is separate from the placement. Upon completion of the placement and the concurrent sale to Technip Energies, TechnipFMC will retain a direct stake of 31% of Technip Energies’ share capital, it stated.
In February, TechnipFMC had announced the completion of its spin-off transaction to create two industry leading publicly traded companies - TechnipFMC, an integrated technology and services provider, and Technip Energies, a leading engineering and technology player.
TechnipFMC said it had agreed to a 60-day lock-up for its remaining shares in Technip Energies, subject to waiver from the Joint Global Coordinators involved in the placement and certain other customary exceptions, including transfer of shares to a subsidiary, granting and enforcement of security interests in connection with financing and derivative transactions and tender into any public tender offer for all or part of the shares.
The placement was conducted without a public offering in any country and was open to eligible institutional investors.
Settlement for the placement is expected to take place on or around April 30.-TradeArabia News Service