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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.

This story originally appeared on Zacks

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.

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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.

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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.

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