PGS turns down TGS offer for acquisition of multi-client data library
Petroleum Geo-Services (PGS) has rejected the proposal from its rival Norwegian geoscience data provider TGS-NOPEC Geophysical (TGS) of acquiring its multi-client data library for $600 million citing that the consideration is less.
The Norwegian surveying services company said that after reviewing and evaluating the “unsolicited”, conditional and non-binding proposal from TGS, its board has concluded unanimously to reject it.
PGS said that its board opines that the value of the multiclient data library is considerably greater to the company than that represented by the proposal from TGS. Furthermore, the company’s board alleged that the timing of TGS’ proposal is opportunistic considering the prevailing market backdrop and macro-economic environment.
PGS stated: “Having consulted with its financial and legal advisers, the Board of PGS has concluded that the proposal is not in the best interests of the Company and its stakeholders.
“PGS remains committed to its integrated service strategy and the benefits to the Company and its stakeholders from the combination of MultiClient and Contract operations.”
The company also stated that it will stay focused on its ongoing talks with its lenders, as announced previously.
The proposal was made by TGS earlier this month with an eye to enlarge its offering as a multi-client geophysical data provider in all major mature and frontier basins across the globe.
Kristian Johansen – CEO of TGS said: “We believe a consolidation and further partnership between our two companies carry strong industry logic and we have seen broad support for this following our announcement last week. We are disappointed by the unwillingness from the PGS board and management to enter into discussions to explore joint opportunities and collaboration as indicated in our Offer.
“TGS remains committed to our strategy of industry leadership and further consolidation to deliver best in class services to our customers, while creating value for our owners and other stakeholders.”