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TGS to take over Magseis Fairfield in $237m deal

Oslo-listed seismic player TGS has moved to take over fellow seabed seismic firm Magseis Fairfield in a deal that values the company at NOK2.33bn ($236.9m).

The two companies have struck a deal that will see TGS put forward a voluntary exchange offer to acquire all shares of Magseis Fairfield for NOK2.30 per share and 0.0426 ordinary shares of TGS.

Based on the closing price of TGS on June 28, the value of the consideration is equal to NOK8.6048 per Magseis share, a 53.7% premium to the closing price of the Magseis shares of NOK5.60 on the same day, TGS said in an Oslo Exchange filing.

The board of directors of Magseis has unanimously resolved to recommend the offer and shareholders representing 33.4% of the outstanding share capital of Magseis, including the largest shareholder, Fairfield MS, have undertaken to accept the offer. The deal needs to be accepted by more than 90% of Magseis’ shareholders, TGS added.

“With a strengthening focus on costs and cycle times in the exploration and production of oil and gas, an increasing amount of demand of geophysical data is driven by infrastructure-led exploration and production monitoring,” said Kristian Johansen, CEO of TGS, adding: “Combining Magseis’s leading position in the Ocean Bottom Node market with TGS’s multi-client and data processing capabilities creates a unique offering of superior quality products and services across the value chain.”

Carel Hooijkaas, CEO of Magseis, remarked: “The seismic industry is undergoing a significant transformation brought about by fundamental structural challenges facing the industry. Adapting to these changes via consolidation will be beneficial to our investors and customers.”

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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