Global Industries Ltd. (GLBL) leaps on takeover by French firm

Global Industries Ltd. (Nasdaq: GLBL) shares rose 51.2% to $7.78 after France’s Technip SA agreed to buy the underwater oil-services specialist for $937 million in cash.

A news release out Sept. 12 revealed that Technip will acquire the Houston-based Global in an all-cash merger. Under the terms of the agreement, which was unanimously approved by Global’s Board of Directors, Global stockholders will receive $8.00 in cash for each share of Global’s common stock. The transaction values Global at an enterprise value of approximately $1,073 million, including Global’s approximately $136 million of net debt.

The $8.00 per share acquisition price represents a 55% premium to Global’s closing share price on September 9, the last trading day prior to announcement of the transaction, and a 92% premium to Global’s average closing share price for the 30 trading days ending on September 9, 2011. The transaction is not subject to any financing condition.

The release quotes Global CEO John B. Reed as saying “Global and Technip share a common view of the promising subsea market. The merger of our two companies will provide our customers with an unrivaled execution capability, combining Technip’s leading, integrated subsea capabilities with Global’s G1200 and G1201, complementary market presence and skills and knowhow in SLay and heavy lift.”

Global is a leading solutions provider of offshore construction, engineering, project management and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide.

Tags: basic materials, buzz stocks, Energy Stocks, GLBL, nasdaq, oil and, oil and gas equipment, underwater construction

This entry was posted on Monday, September 12th, 2011 at 12:29 pm by Glenn and is filed under Energy Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.