Home › Forums › General › Guess what I’ve just heard/read? › Acergy to buy out SS7
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deepseacon.
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September 14, 2010 at 9:30 am #3836
Scott Beveridge
ParticipantThis seems to be a big one!!!!! Except from the Beeb
Norway’s Acergy has announced an acquisition that will create a major new oil and gas engineering firm.
The company will buy out rival Subsea 7, creating a company of 12,000 employees and worth $5.4bn (£3.6bn).
Acergy built what was the world’s longest underwater gas pipeline in 2006, connecting the UK to Norwegian North Sea gasfields.
Markets took the news well, with Acergy shares up 11% in early Monday trading, while its target Subsea 7 was up 12%.
The buyout on the Oslo stock exchange will be an all-share offer, meaning that Acergy will not need to raise any cash to complete the deal.
The companies expect the deal to result in cost savings of at least $100m per year.
Problem is, as I see it, is the last sentence….
September 14, 2010 at 11:09 am #29217baglimit
Participantassuming the 12000 employees simply combines the workforce of both groups, certainly a large chunk of the savings comes from merging back office admin, management, and with a larger entity opens up cheaper options when seeking finance.
fully understand what you suggested, but it has to play out first.September 14, 2010 at 11:17 am #29218ParticipantAgreed Bag… let’s see what happens within A WEEK!!!
September 14, 2010 at 12:20 pm #29219Anonymous
Guest… let’s see what happens within A WEEK!!!
The annoucement was made back in June, so a few months old already. Its really a merger but for global tax and other business reasons, some have called it a buyout or take over. The new company is called Subsea 7, says it all really.
September 14, 2010 at 1:08 pm #29220Participant… let’s see what happens within A WEEK!!!
The annoucement was made back in June, so a few months old already. Its really a merger but for global tax and other business reasons, some have called it a buyout or take over. The new company is called Subsea 7, says it all really.
BLOODY HELL!!! I missed the date (at the top of the beeb there…) OOPS!
And the rest of the news… Here from s-Clubs website:
June 21, 2010 – Acergy S.A. ("Acergy") (NASDAQ-GS: ACGY; Oslo Stock Exchange: ACY) and Subsea 7 Inc. ("Subsea 7") (Oslo Stock Exchange: SUB) today announced that their Boards of Directors have agreed to combine the two companies. The transaction will create a combined entity with:
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A market value of $5.4 billion(1) and a global organisation of 12,000 people
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The capability and resources to address the worldwide growth in size and complexity of subsea projects
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Enhanced local presence in all major offshore oil and gas regions
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The full spectrum of subsea services – SURF, Conventional and Life-of-Field, a high-end diversified fleet and extensive fabrication and onshore facilities
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Expected annual synergies of at least $100 million
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A backlog of $5.3 billion (2) with a complementary mix by contract type and geographical region as at May 31, 2010Combination structure and terms
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The combination is based on an agreed ratio between the equity value of Acergy and Subsea 7 of 54:46 (Acergy:Subsea 7)
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Subsea 7’s shareholders to receive 1.065 Acergy common shares for every Subsea 7 common share
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The Board will have a majority of independent directors and be chaired by Subsea 7’s current Chairman, Kristian Siem.
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The new entity, to be named Subsea 7, will be led by a highly experienced executive management team comprising: Chief Executive Officer, Jean Cahuzac; Chief Operating Officer, John Evans; and Chief Financial Officer, Simon Crowe
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Completion is anticipated towards the end of this year or the first quarter of 2011, subject to shareholder approval, regulatory approvals and other customary completion conditions
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The Board of Directors of both companies have unanimously agreed to recommend the combination to their respective shareholdersSeptember 14, 2010 at 1:34 pm #29221James McLauchlan
ParticipantThey were gearing up for this way back… Both sides were cutting back on ROV crews and staff way before the official announcement.
September 14, 2010 at 6:49 pm #29222mctintin
ParticipantIt is a takeover as S Club have some bonds they can’t afford to pay, so Acergy are taking on and paying off the debt.
The reason for keeping the name is Subsea 7 has a more recognised name in the industry and at least people know how to pronounce it. 😆
September 14, 2010 at 9:02 pm #29223ParticipantIt is a takeover as S Club have some bonds they can’t afford to pay, so Acergy are taking on and paying off the debt.
The reason for keeping the name is Subsea 7 has a more recognised name in the industry and at least people know how to pronounce it. 😆
Agree on the name front. :tup:
September 15, 2010 at 10:51 am #29224Rons_ROV_Links
ParticipantAcergy announced August 31 to publish a prospectus and disclosure update, see this document [pdf].
Still waiting …
September 16, 2010 at 9:59 am #29225ParticipantShareholders in Acergy will have their chance to vote on the proposed merger with Subsea 7 at an extraordinary general meeting.
Acergy has called the EGM for 9 November and it is due to take place in Luxembourg.
“The purpose of the EGM is to consider and approve the combination with Subsea 7, and to amend the Company’s Articles of Incorporation, with effect from completion,” Acergy has stated, “…. including increasing the authorised share capital of the company and changing the name of the Company to “Subsea 7 S.A.”; and to appoint the new directors of the company as from completion.”
January 5, 2011 at 7:40 am #29226deepseacon
ParticipantAcergy/Subsea 7 merger due to be completed on 7 January
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Acergy and Subsea 7 have announced today that the merger of the companies is expected to be completed on January 7, 2011.In light of this, the companies announced that after completion the new company will be known as Subsea 7 SA and the restated Articles of Incorporation approved by Acergy’s shareholders on November 9, 2010 and the appointment of the new Board of Directors of Subsea 7 SA will become effective.
The completion of the combination is expected to take place following the closing of the Oslo Børs on Friday January 7 2011. As a result, the first day of trading in Subsea 7 SA’s shares will be Monday January 10, 2011
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http://www.oilpubs.com/oso/article.asp?v1=10325.
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