M&A Activity • Jun 2, 2015
M&A Activity
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Leidschendam, the Netherlands, 1 June 2015
Fugro has signed an agreement to divest its multi-client data library to Spectrum ASA, a Norwegian multi-client seismic data specialist supplying the global oil and gas industry with sub-surface imagery on a non-exclusive basis, for a cash consideration of US\$ 115 million (approximately EUR 100 million). The multi-client library business has been non-strategic since the divestment of the majority of Fugro's geoscience activities in 2013, and this transaction is consistent with Fugro's strategy to focus on its geotechnical and survey activities going forward.
The multi-client library consists of high quality seismic data in support of oil and gas exploration. The database contains about 1.6 million kilometres of 2D and over 140,000 square kilometres of 3D seismic data, with a focus on Australia and Norway.
Paul van Riel, CEO: "We are pleased with the agreement reached with Spectrum. This divestment is a logical consequence of our strategic decision, as communicated in February this year, to focus on our core activities, where we have market leading positions. The proceeds of the transaction will be applied to debt reduction."
The transaction will result in a non-cash impairment of approximately EUR 40 million. As part of its multiclient activities in Australia, Fugro has built up value by taking indirect interests in certain exploration projects, through a profit sharing agreement with Finder Exploration Pty. Fugro retains these interests, including its10% indirect stake in the WA-435-P exploration permit in Australia, where oil was discovered at the Phoenix South-1 well in 2014. The expected recoverable value of these indirect interests is well in excess of the book value.
Closing of the transaction is targeted per 30 June 2015.
For more information: Media Rob Luijnenburg [email protected] +31 70 31 11129 +31 6 1594 0639
Investors Catrien van Buttingha Wichers [email protected] +31 70 31 15335 +31 6 1095 4159
Fugro creates value by acquiring and interpreting earth and engineering data and providing associated consulting services to support clients with their design and construction of infrastructure and buildings. Fugro also supports clients with the installation, repair and maintenance of their subsea infrastructure.
Fugro works around the globe, predominantly in energy and infrastructure markets offshore and onshore. It employs approximately 13,500 employees in over seventy countries. In 2014 Fugro's revenue amounted to EUR 2.6 billion; Fugro is listed on Euronext Amsterdam.
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