EIOF - 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.
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.