Update regarding seismic joint venture Global Seismic Shipping AS
Eidesvik Offshore ASA (“Eidesvik”, or the “Company”), CGG Marine Resources Norge AS (“CGGN”) and CGG have agreed on a term sheet for a transaction whereby CGG is contemplating to acquire Eidesvik’s 50% ownership share in Global Seismic Shipping AS (“GSS”). CGG has in turn entered into a memorandum of understanding with Shearwater GeoServices Holding AS (“Shearwater”) for transactions in which a sale of all shares in GSS from CGGN to Shearwater is a part.*
As consideration for Eidesvik’s shares in GSS, CGGN and Eidesvik have agreed that Eidesvik shall receive from CGGN an undisclosed number of shares in Shearwater (“Consideration Shares”). CGG and Eidesvik have agreed on a put option for Eidesvik at US$ 30 million for these Consideration Shares for a period of up to 36 months after closing of the transaction. Closing is expected before year end 2019. The term sheet has customary closing conditions, including, but not limited to, consent from banks, approval from relevant board of directors, and closing of the transactions agreed between Shearwater and CGG.
In a statement, Jan Fredrik Meling, CEO of Eidesvik Offshore ASA, said “The agreement will, when completed, mark the end of a 22 year partnership with CGG, and also the beginning of Eidesvik’s role as a shareholder in Shearwater. We have been impressed with what Shearwater has been able to build over a very short period of time, and we look forward to taking part in Shearwater’s future path as a shareholder in the company.”
Bømlo, June 4, 2019
Jan Fredrik Meling, CEO, phone no: +47 91 67 51 19
Tore Byberg, CFO, phone no: +47 47 50 90 12
The Company has agreed a term sheet for the transactions referred in this announcement. However, no definite agreements have been entered into and completion of any of the transactions contemplated by the term sheet is subject to certain terms and conditions, including, but not limited to, consent from banks, approval from relevant board of directors, and closing of the transactions agreed between Shearwater and CGG. No guarantee can be made that any transaction as contemplated by the term sheet or otherwise will be initiated or completed.
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to forecasts, projections and estimates, statements of management’s plans, objectives and strategies for the Company, such as planned expansions, investments or other projects, management, as well as statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized.
No assurance can be given that such expectations will prove to have been correct. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
*) For further details on the agreement between CGG and Shearwater, please refer to separate announcements made by CGG and Shearwater on June 4, 2019.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.