Seismic group TGS to buy rival PGS in $864 mln deal (updated)
18/09/2023 08:23
(Adds cost cuts in 2nd paragraph, ownership in 3rd paragraph,
share prices in 4th paragraph, detail in 5th paragraph)
OSLO, Sept 18 (Reuters) - Seismic company TGS TGS.OL ,
a supplier of key data to the oil industry, has agreed to buy
rival PGS PGS.OL in an all-share transaction valued at 9.3
billion Norwegian crowns ($863.74 million), the two Oslo-listed
companies said on Monday.
The companies expect "significant economies of scale" from
the combination, with a preliminary estimate of cost cuts
amounting to $50 million, they said in a joint statement.
TGS' owners will hold two-thirds of the merged company,
paying an estimated 20.7% premium to PGS' closing share price on
Sept. 15, they added.
PGS' shares rose 8.6% by 0721 GMT on Monday while TGS
fell by 6.2%.
The merged company will offer customers a library of seismic
data from all active offshore basins in the world, and will own
a fleet of seven 3D data acquisition vessels, TGS and PGS said.
The transaction remains subject to certain conditions,
including the completion and execution of the merger plan as
well as shareholder and regulatory approvals.
($1 = 10.7671 Norwegian crowns)
(Reporting by Terje Solsvik and Nerijus Adomaitis, editing by
Louise Rasmussen)
((terje.solsvik@thomsonreuters.com; +47 918 666 70;))