Shearwater Buys Schlumberger's Seismic Data Business in $600 Million Deal
22 August 2018 - 11:53AM
Dow Jones News
By Dominic Chopping
Shearwater GeoServices has Wednesday agreed to buy Schlumberger
Ltd.'s (SLB) marine seismic-data business in a cash-and-shares deal
worth $600 million.
Shearwater GeoServices--a joint venture between GC Rieber
Shipping ASA (RISH.OS) and Rasmussengruppen AS--currently operates
a fleet of four vessels that use seismic technology to map
oil-and-gas reservoirs beneath the sea bed. It will acquire the
marine seismic acquisition assets and operations of WesternGeco,
the geophysical services product line of Schlumberger which
comprises 10 seismic acquisition vessels, two source vessels,
marine technology and manufacturing facilities.
"We will combine two strong complementary businesses and create
an industry-leading full-service geophysical company with a solid
financial and strategic platform," says Irene Waage Basili, Chief
Executive of Shearwater.
"Our strategy has been to build a stronger company during the
downturn, and we are very pleased to see the commitment made by our
owners, which enables this transaction."
Schlumberger will receive cash consideration based on an
enterprise value of $600 million plus a 15% stake in Shearwater. It
will also be entitled to payments linked to future vessel
usage.
An additional $50 million of cash will be injected in Shearwater
to ensure a more robust financial platform, bringing the total cash
funding requirement for the proposed transaction to $650 million.
This will be funded by $325 million in new cash equity and $325
million in debt financing.
Following the deal, GC Rieber Shipping will own 20% in the
combined company with Rasmussengruppen holding 65% and Schlumberger
15%.
GC Rieber Shipping expects to book a non-cash gain of $32
million as a result of the transaction.
The deal is subject to regulatory approvals but the parties
expect it to close in the fourth quarter of 2018.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
August 22, 2018 05:38 ET (09:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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