Back to top

Image: Shutterstock

TechnipFMC (FTI) Announces Divestment of Technip Energies Shares

Read MoreHide Full Article

TechnipFMC Plc (FTI - Free Report) announced the divestment of 25 million Technip Energies shares through a private placement in the form of an accelerated bookbuild offering. Notably, this represents about 14% of the share capital of Technip Energies, which started trading under the symbol TE on the Euronext Paris Exchange early this year.

In February, TechnipFMC completed the spin-off of its engineering and construction activities into a separate entity, Technip Energies, and transformed itself into a technology-focused equipment provider for the energy industry. Importantly, TechnipFMC shareholders own about 50% of the outstanding Technip Energies shares on a pro-rata basis.

The stock price in the placement has been fixed at €11.10 per share, thereby, offering total gross proceeds of €277.5 million. At the same time, Technip Energies will buy 1.8 million shares from TechnipFMC at €11.10 per share in accordance with the placement price. Notably, the purchase is separate from the placement.

Following the completion of the transaction, TechnipFMC will retain a direct stake of 31% of Technip Energies’ share capital.  The company agreed to a 60-day lock-up for its remaining shares in Technip Energies based on certain customary exceptions, which involve the transfer of shares to a subsidiary, granting and enforcement of security interests regarding financing, and derivative transactions and tender into any public tender offer for all or part of the shares.

The placement was carried out for eligible institutional investors and without a public offering in any country. Notably, settlement for the placement will likely occur on or around Apr 30.

Company Profile & Price Performance

TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions for the energy industry. It operates through two business segments — Subsea Technologies and Surface Technologies.

Shares of the company have outperformed the industry in the past six months. Its stock has gained 43% compared with the industry’s 40.3% growth.

 

 

Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are Sasol Ltd. (SSL - Free Report) and Exxon Mobil Corporation (XOM - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Ecopetrol S.A. (EC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sasol’s earnings for 2021 are expected to surge 81.5% year over year.

Exxon’s earnings for 2021 are anticipated to increase 18.2% year over year.

Ecopetrol’s earnings for 2021 are expected to rise 24.6% year over year.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Exxon Mobil Corporation (XOM) - free report >>

TechnipFMC plc (FTI) - free report >>

Ecopetrol S.A. (EC) - free report >>

Sasol Ltd. (SSL) - free report >>