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Aker — M&A Activity 2022
Aug 30, 2022
3526_iss_2022-08-30_70435e8d-51b8-4859-8a45-61c99bd555fe.html
M&A Activity
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Aker ASA and Schlumberger Deepening Long-Term Collaboration
Aker ASA and Schlumberger Deepening Long-Term Collaboration
Fornebu - August 30, 2022 - Aker ASA ("Aker") announced today a deepening of its
long-term collaboration with Schlumberger. The companies will leverage
complementary capabilities to strengthen their joint commitment to innovation,
including within subsea and by exploring opportunities for digitalization and
decarbonization technologies.
Reference is made to Aker Solutions ASA's ("Aker Solutions") announcement
regarding the formation of a joint venture with Schlumberger and Subsea 7 to
drive innovation and efficiency in subsea production by helping customers unlock
reserves, lower development costs, and reduce time to first oil. The agreement
will combine a portfolio of innovative technologies, such as all-electric subsea
production systems that help customers meet their decarbonization goals.
The proposed joint venture will combine Schlumberger and Aker Solutions' subsea
businesses, bringing together deep reservoir domain and engineering design
expertise, an extensive field-proven subsea production and processing technology
portfolio, world-class manufacturing scale and capabilities, and a comprehensive
suite of life-of-field solutions to customers all over the world. Subsea 7 will
be an equity partner in the new joint venture.
"We are very pleased to be strengthening our collaboration with Schlumberger.
Aker Solutions, Schlumberger and Subsea 7 are complementary businesses, both in
terms of products and services, as well as customers and geographical presence.
Furthermore, Schlumberger shares our commitment to innovation, such as deploying
digital solutions and decarbonization technologies," said Øyvind Eriksen,
President and Chief Executive Officer of Aker ASA.
"This joint venture will bring together world-class businesses that are uniquely
positioned to provide subsea technologies to help our customers improve recovery
and reduce overall subsea development costs," said Schlumberger CEO Olivier Le
Peuch. "Customers will benefit from enhanced services that leverage digital and
technology innovation to drive improved performance while increasing energy
efficiency and reducing CO2?emissions."
Following the transaction, Schlumberger will own 70% of the joint venture, with
Aker Solutions owning 20%, and Subsea 7 owning 10%. In addition to the
shareholding in the JV, the transactions include a settlement of USD 700
million, of which USD 306.5 million is settled in Schlumberger shares, USD 306.5
million in cash from Subsea 7, and a vendor note from the joint venture to Aker
Solutions of USD 87.5 million. The transaction is subject to regulatory
approvals and other customary closing conditions and is expected to close during
second half 2023. In addition to the value of the transactions, Aker Solutions
will retain the cash generation from the Subsea business until closing,
estimated at around USD 300 million. This estimate includes cash generation for
the seven quarters from second quarter of 2022 until end of 2023.
"The transaction means Aker Solutions can both unlock value creation and free up
capital for greater investment capacity. This allows it to accelerate its
transformation and create a world-class digitally powered engineering and
project execution company, enabled by Cognite's data platform and Aize's
software applications. I am confident that this makes Aker Solutions more
competitive for opportunities both in ensuring energy security through its oil
and gas business, as well as in the energy transition and renewables," said
Eriksen.
For more information about the transaction structure and terms, please refer to
Aker Solutions' announcement available at www.akersolutions.com.
-END-
For questions, please contact:
Torbjørn Andersen, Vice President of External Communications, Aker Solutions
Tel: +47 928 85 542
Josh Byerly - Vice President of Communications, Schlumberger
Moira Duff - Director of External Communication, Schlumberger
Tel: +1 (713) 375-3407 (http://tel:+1%20713%20375%203407)
Julie Taylor, Head of Group Communications, Subsea 7
Tel +44 1224 526270
Atle Kigen, Head of Media Relations and Public Affairs, Aker ASA
Tel: +47 907 84 878
Email: [email protected]
Investors
Fredrik Berge - Vice President of Investor Relations, Aker Solutions
Tel: +47 450 32 090
Ndubuisi Maduemezia - Vice President of Investor Relations, Schlumberger
Joy V. Domingo - Director of Investor Relations, Schlumberger
Tel: +1 (713) 375-3535 (http://tel:+1%20713%20375%203535)
Katherine Tonks - Investor Relations Director, Subsea 7
Tel: +44 20 8210 5568
Christina Chappell Schartum, Head of Communications and Investor Relations, Aker
ASA
Tel: +47 905 32 774
Email: [email protected]
This information is considered to include inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock
exchange announcement was published by Laila Hop, Paralegal, Aker ASA, on August
30, 2022, at 07:00 CEST.