TGS ASA agreed to buy Norwegian rival PGS ASA in an all-share deal as the companies seek to take advantage of a rebounding market for geophysical data for the offshore energy industry.
TGS is offering 0.06829 of its shares for each PGS share in a deal that has the backing of both boards, the Oslo-based companies said in join statement on Monday. TGS shareholders will end up with about two thirds of the combined company, which will have a fully-diluted market capitalization of about $2.62 billion and net interest-bearing debt of $649 million.
The deal gives TGS the ability to acquire geophysical data with its own vessels with the addition of PGS’ fleet and comes as the oil services industry gradually improves with oil and gas companies raising investments in offshore exploration. Both stocks are trading at less than half their value five years ago.
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