08:26 – 14 Aug. | Updated 09:10 – 14 Aug.
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On Thursday, PGS rejected TGS ‘bid of just over NOK 5.3 billion for the company’s multi-client library.
The PGS board and the management of the seismic company came to the conclusion that the value of the library is significantly greater for PGS than what is reflected in TGS ‘bid. The timing is also considered opportunistic, given the current market and macro conditions, it is added.
TGS comments on the refusal in a message on Friday morning.
– We believe a consolidation and further partnership between our two companies provides a strong industrial logic, and we have seen broad support for this in the wake of our announcement. We are disappointed at the reluctance of the board and management of PGS to enter into discussions to explore collective opportunities and cooperation, as indicated in our offer, says TGS CEO Kristian Johansen in a statement.
He continues:
– TGS will continue with our strategy and industry management and further consolidation to deliver the best service to our customers, while we create value for our owners and other interest groups.
CFO of TGS, Fredrik Amundsen, answers questions from TDN Direkt as to whether they want to increase the bid:
– Given the rejection, the offer is now gone and we are awaiting what kind of refinancing PGS proposes for its shareholders, but we are still of the opinion that the industry needs consolidation and are ready to contribute to it, says the CFO.
TGS expresses itself willingly for further conversations.
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