TechnipFMC announced the resumption of activities toward its planned separation into two independent, publicly traded companies: TechnipFMC, a fully integrated technology and services provider, and Technip Energies, a leading engineering and technology player.
The transaction is expected to be structured as a spin-off of a majority stake in TechnipFMC’s Technip Energies segment. The separation is expected to be completed in the first quarter of 2021.
“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,” said Doug Pferdehirt, chairman and chief executive officer of TechnipFMC. “We continue to believe this action would allow both businesses to thrive independently within their sectors, enabling each to unlock significant shareholder value.”
Bpifrance, which has been a substantial shareholder of TechnipFMC since 2009, said it is committed to support the transaction and that it intends to invest $200 million in Technip Energies by acquiring shares from TechnipFMC’s retained stake in Technip Energies. Shares received by Bpifrance for the new investment would be in addition to those it will receive as a current shareholder of TechnipFMC. As a result, Bpifrance will become a long-term reference shareholder of Technip Energies.
The company intends to distribute 50.1% of the outstanding shares in Technip Energies to existing TechnipFMC shareholders on a pro rata basis. TechnipFMC will retain ownership of the remaining 49.9% of Technip Energies’ outstanding shares as of the distribution date.
The company said it intends to conduct an orderly sale of its stake in Technip Energies over time. The company further has agreed to a lockup period that expires 60 days from the date of separation.
Technip Energies will be incorporated in the Netherlands, with its headquarters in Paris.