UK-based oil and gas company TechnipFMC has resumed the process to separate its activities into two independent publicly traded companies.
The company first announced its plans to segregate the business in August 2019. However, it postponed the plan last year due to the global economic downturn caused by the Covid-19 pandemic.
As planned, the businesses will be divided into TechnipFMC, a fully integrated technology and services provider, and Technip Energies, an engineering and technology company.
Existing TechnipFMC shareholders are expected to hold 50.1% of the outstanding shares in Technip Energies on a pro rata basis. The company will own the remaining shares and aims to divest its stake overtime.
Bpifrance, a significant shareholder of TechnipFMC, supports the separation and is expected to invest $200m in Technip Energies by acquiring shares from TechnipFMC’s retained stake.
TechnipFMC chairman and CEO Doug Pferdehirt said: “We are very excited to announce the resumption of activities related to the separation and the creation of two industry-leading diversified pure-play companies poised to capitalise on the energy transition.
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By GlobalData“The increased clarity we now have in the market outlook coupled with our demonstrated ability to successfully execute projects in this most challenging period give us confidence to move forward with the separation.
We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value.”
The company expects that the segregation will provide the two companies with specific customer bases and growth opportunities. It will also enable them to focus on management, resources and capital.
