In an official press release issued this morning, the TechnipFMC group announced some details about its demerger project, which it had been talking about since last year. Indeed, the group has communicated the official calendar of this operation in which we learn that the demerger will become effective as of February 16, in 12 days and will give rise to two independent companies. Let's come back together on this new information which has made the share price rise this morning.
Let us recall here that the plan to spin off this giant of the oil sector had been revealed for the first time in August 2019. It was then postponed to March of the following year due to market conditions generated by the health crisis of Covid-19.
It was only a few weeks ago, at the beginning of January, that this operation was finally relaunched. It should also be recalled that this demerger should give rise to two independent companies, Technip Energies and TechnipFMC.
Technip Energies will be listed on Euronext Paris with headquarters in Paris but will be registered in the Netherlands. TechnipFMC, which will retain the original name of the group, will remain registered in the United Kingdom and will be headquartered in Houston. It will be listed on Euronext Paris as well as on the NYSE in the United States.
Let us now take a closer look at the conditions and rules established by this demerger or spin off as it is called in the garden of finance. This operation will involve the transfer of 50.1% of the outstanding common shares of Technip Energies on a pro rata basis to the shareholders of TechnipFMC.
In the press release published this morning, Thursday, February 04, 2021, the Group also announced that the date of February 16 has been set for the validation and closing of the transaction.it is therefore on this date that the shares of the two new entities, which have become autonomous, will begin to be traded on the stock market.
As regards the distribution of shares between the two players in this operation, TechnipFMC, which was originally created by the merger of the French company Technip and the US company FMC Technologies, will retain ownership of the remaining 49.9% of Technip Energies' shares.
At a later stage and over time, the TechnipFMC group has decided to proceed with an orderly sale of its remaining stake.
Following this announcement, the markets have been very responsive and a bullish trend in TechnipFMC shares was observed this morning. It remains to be seen whether this trend will continue and how the markets will anticipate, in the coming days, the beneficial or not changes of this strategic operation which is fast approaching its effective date.