Geoex has increased its initial offer for the takeover of MultiClient Geophysical (MCG), a marine seismic data provider, beating Spectrum’s competing offer.
On January 19, 2017, Geoex, a multi-disciplinary geophysical and geological services company, launched an offer to acquire all outstanding shares in MCG at a consideration of NOK 1.20 per share, valuating the total share capital of MCG at NOK 111.4 million.
Several days later, Spectrum launched a competing offer with a price of NOK 1.25 per MCG share which valued the total share capital of MCG at NOK 116 million. Spectrum’s offer period expires February 16, 2017.
Following Spectrum’s competing offer, Geoex has decided to increase its first offer and on Thursday announced a new one, offering NOK 1.40 per share valuating the total share capital of MCG at approximately NOK 130 million.
Geoex’s new offer represents a premium to the offer price offered by Spectrum in the competing offer of approximately 13% and a premium to the initial offer offered by Geoex of approximately 17%. The offer period expires on February 17.
According to its statement, Geoex will finance the new offer for MCG in part by existing corporate funds or funds being available to Geoex at the time of settlement, including part funding by way of a loan made available by TGS.
Geoex and TGS have also entered into an agreement under which TGS will acquire from Geoex certain parts of the multi- client data library currently held by MCG. The majority of these multi-client data libraries are in Norway.
Geoex said the company has no specific plans for reorganization of the MCG Group and intends to keep the subsidiaries of the company in the Geoex structure. Furthermore, Geoex has made no firm plans in respect of any change of the employment relationships that are established in the MCG Group.
However, Geoex stated it will consider utilizing synergies and optimizing the management of the MCG Group following the completion. This may include, inter alia, workforce reductions, with redundancy compensation, in the MCG Group.
Posted on February 2, 2017 with tags Geoex, MCG, Seismic, Spectrum.