EMGS announces agreement to acquire OHM
(Thomson Reuters ONE) -
Electromagnetic Geoservices ASA (EMGS) has entered into an agreement to acquire
OHM Surveys Holding AS (OHM), a marine electromagnetic (EM) acquisition company,
from certain funds controlled by Sector Asset Management and Seatrans Group
(Euro Trans Skips AS) for USD 15.75 million in a stock-for-stock transaction.
As a part of the transaction, EMGS has entered into an agreement with Seatrans
Group to charter the two vessels OHM Leader and OHM Express on a pay-per-use
basis. The vessels will, at no standby cost, be ready to mobilise on 3-, 6- or
12-month charters over the course of the next 42 months (OHM Leader) and 30
months (OHM Express). EMGS will equip these two purpose-converted EM vessels
with its custom-designed acquisition set, giving the vessels the ability to
acquire the same high-quality 3D EM data as is obtained using EMGS's purpose-
built 3D EM vessels.
The two vessels will be available at short notice from Bergen and Singapore,
thereby providing EMGS with capacity to quickly respond to market demand in
Europe, Africa and the Asia Pacific region at substantially reduced steaming and
mobilisation costs.
"This transaction enables us to respond to increased demand in a cost-efficient
manner and without adding financial risk. In addition, it provides us with a
strengthened intellectual property position and access to skilled EM personnel,"
said Roar Bekker, EMGS chief executive officer. "Our customers will benefit from
this acquisition through the considerable organisational, operational and
technological synergies we see between the two companies. We are delighted to
join forces and look forward to further developing the EM market and our unique
technology."
The transaction will result in the issue of 8,305,369 shares in EMGS to the
sellers, representing 4.23% of the outstanding shares in EMGS. The number of
EMGS shares issued has been calculated based on the volume weighted average
share price the 10 last trading days prior to this announcement. The shares will
be issued pursuant to a board authorization as granted by the annual general
meeting in EMGS on 22 June 2011. The completion of the transaction is subject to
certain conditions, including, inter alia, required corporate resolutions and
completion of due diligence investigations. Provided fulfilment of the
conditions, the transaction is expected to close mid-September.
The transaction also includes a pre-paid service agreement worth approximately
USD 2.6 million between OHM and Rock Solid Images (RSI), which provides EMGS
with additional processing capacity and expertise.
OHM was incorporated on 12.10.2010 and has not prepared any annual financial
statements. OHM holds 100% of the shares in OHM Ltd and OHM Surveys Sdn Bhd
(together "OHM Group"). OHM Group currently has approximately 40 employees. The
CEO of OHM is Tom Atle Pedersen and its board of directors consists of Johan
Hvide, Erik Evjen and Tom Atle Pedersen.
The transaction will not result in any agreements or other arrangements for the
benefit from EMGS to management or members of the board of directors of either
EMGS or OHM.
Contact
Roar Bekker, EMGS chief executive officer, +47 22 01 14 00
Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00
Chris Guldberg, EMGS PR/IR manager, +47 92 81 07 07
About EMGS
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM)
technology to support oil and gas companies in their search for offshore
hydrocarbons. EMGS supports each stage in the workflow, from survey design and
data acquisition to processing and interpretation. The company's services enable
integration of EM data with seismic and other geophysical and geological
information to give explorationists a clearer and more complete understanding of
the subsurface. This improves exploration efficiency, and reduces risks and the
finding costs per barrel.
EMGS has conducted more than 500 surveys to improve drilling success rates
across the world's mature and frontier offshore basins. The company operates on
a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston,
USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: EMGS via Thomson Reuters ONE
[HUG#1542628]
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2011 - 08:21 Uhr
Sprache: Deutsch
News-ID 60883
Anzahl Zeichen: 5326
contact information:
Town:
Trondheim
Kategorie:
Business News
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