TechnipFMC (FTI) to Sell Off $17.6M Technip Energies Shares
Following the execution of the transaction, TechnipFMC (FTI) will hold onto a direct interest of 12.3% in Technip Energies' share capital.
TechnipFMC plc FTI announced the divestment of 17.6 million Technip Energies shares through a private placement with HAL Investments, the Dutch investment affiliate of HAL Holding, N.V. This represents 9.9% of the share capital of Technip Energies, which started trading under the symbol TE on the Euronext Paris Exchange earlier this year.
In February, TechnipFMC completed the spin-off of its engineering and construction activities into a separate entity called Technip Energies and transformed itself into a technology-focused equipment provider for the energy industry. The company’s shareholders owned about 50% of the outstanding Technip Energies shares on a pro-rata basis.
The stock price in the placement was fixed at €11.15 per share, thereby offering total gross proceeds of €196.2 million. HAL Investments agreed to a 180-day lock-up period for its shares in Technip Energies.
The sale will be settled in two instalments. HAL Investments will initially purchase 8.6 million shares from TechnipFMC with the transaction scheduled to close in the near term. The remaining 9 million shares are scheduled to be settled early in the fourth quarter of 2021, pending HAL Investments' receipt of normal regulatory clearances.
Following the completion of the transaction, TechnipFMC will retain a direct stake of 12.3% of Technip Energies’ share capital. The company settled on a 60-day lock-up for its remaining stakes in Technip Energies, based on certain customary exceptions. The 60-day lock-up period will end Oct 2, 2021.
The placement was carried out for eligible institutional investors and without a public offering in any country.
Brief on the Company
TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. The company, having descended from the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically-sophisticated systems and products for subsea, onshore/offshore and surface projects.
Zacks Rank & Key Picks
TechnipFMC currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Devon Energy Corporation DVN, Matador Resources Company MTDR and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Devon Energy Corporation (DVN): Free Stock Analysis Report
TechnipFMC plc (FTI): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Free Stock Analysis Report
Matador Resources Company (MTDR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research