CGG Announces the Acquisition of Approximately 60 Percent of the Share Capital of Exploration Resources ASA and a Cash Offer for
August 29 2005 - 4:07AM
PR Newswire (US)
PARIS, August 29 /PRNewswire-FirstCall/ -- Compagnie Generale de
Geophysique ("CGG" 0000120164 - GEPH.PA - NYSE : GGY) acquired
approximately 60 percent of the share capital (4,066,650 shares) of
Exploration Resources ASA ("Exploration Resources") on August 29,
2005. CGG did not previously own any shares in Exploration
Resources. Exploration Resources is listed on Oslo B0rs under the
ticker code "EXRE". CGG is a leading supplier of geophysical
products and services to the worldwide oil and gas industry. Its
shares are listed on the Eurolist of Euronext Paris SA and the New
York Stock Exchange (under the form of American Depositary Shares).
All shares were acquired at a purchase price of NOK 340 per share.
CGG will make a mandatory cash offer for all remaining shares in
Exploration Resources in accordance with the provisions of the
Norwegian Securities Act. The offer price will be NOK 340 per
share. The offer price represents a premium of 8.3 percent to the
closing price of NOK 314 for the shares of Exploration Resources on
August 26, 2005, and a premium of approximately 34.4 percent to the
average trading price over the last month. The employees, the
assets and the technological base of Exploration Resources and its
subsidiary Multiwave are perfectly complementary with CGG's. The
Group expects no redundancies as a result of this transaction. In
particular, the Exploration Resources organization in Bergen will
be maintained and further developed as a competence center within
CGG. CGG Chairman and CEO Robert Brunck comments: "The step we have
now taken through this acquisition of approximately 60 percent of
the share capital of Exploration Resources falls clearly within the
strategy followed by the Group for many years to consolidate the
seismic sector. It will allow us to raise our fleet to a level
equivalent to the current market leaders, at a time when the
seismic sector is entering a growth cycle, which I believe to be
strong and lasting, and it will also enable us to reinforce
significantly our position in the emerging business of sea-bed
activities. In this respect, I take great interest in the
technological collaboration existing between Multiwave and the
University of Bergen, which we intend to pursue and strengthen. The
Group has been present in Norway for many years, a country in which
most of the technology and marine seismic acquisition capacity in
the world originated. In the near future, should the conditions be
favorable, we might as well contemplate the listing of our
securities on the Oslo Stock Exchange. Accordingly, this
acquisition constitutes an important strategic step for CGG and, I
am convinced it will create value for our shareholders". Financial
advisor to CGG in this transaction is Rothschild & Cie (Paris)
and Legal advisors are Willkie Farr & Gallagher LLP (Paris) and
BA-HR (Oslo). Today at 3:00pm Paris time, CGG will host a
conference call. The phone number to dial will be available on CGG
website (http://www.cgg.com/) as from 1:00pm. Paris Time. Contact:
Christophe BARNINI +33-1-64-47-38-11 About Exploration Resources:
Exploration Resources is a Norwegian based provider of marine
seismic services to the global oil and gas industry with focus on
towed seismic data acquisition, multi-clients seismic services, and
4C/4D/seabed operations. About CGG: CGG is a global participant in
the oilfield services industry, providing a wide range of seismic
data acquisition, processing and reservoir services to clients in
the oil and gas exploration and production business. It is also a
global manufacturer of geophysical equipment through its subsidiary
Sercel. Email : Internet : http://www.cgg.com/ The information
included herein contains certain forward-looking statements within
the meaning of Section 27A of the securities act of 1933 and
section 21E of the Securities Exchange Act of 1934. These
forward-looking statements reflect numerous assumptions and involve
a number of risks and uncertainties as disclosed by the Company
from time to time in its filings with the Securities and Exchange
Commission. Actual results may vary materially. DATASOURCE:
Compagnie Generale de Geophysique (CGG) CONTACT: Contact:
Christophe BARNINI +33-1-64-47-38-11
Copyright