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Schlumberger notes progress in EDC deal negotiations

September 23, 2015, 14:20 UTC+3
September 30 is the deadline to close the repeatedly postponed deal
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© AP Photo/Pat Sullivan, File

MOSCOW, September 23. /TASS/. Schlumberger notes progress in negotiations on acquisition of 46% of shares in the Russian oilfield services provider Eurasia Drilling Company (EDC), the company told TASS on Wednesday.

"We are unable to comment on progress in talks and we will also refrain from speculating on the potential outcome of the deal," Schlumberger said responding to the question whether the deal closing date is postponed from September 30 to another date.

TASS reported earlier Schlumberger fixed a teleconference regarding the transaction on September 30. This date is the deadline to close the repeatedly postponed deal.

Russia’s Federal Antimonopoly Service said earlier the government commission on foreign investments may consider the transaction in mid-October 2015.

As TASS previously said, on January 20 it was reported that US-based Schlumberger, the world’s largest oilfield services company, will acquire Eurasia Drilling, an oilfield service company, despite anti-Russia sanctions and falling oil prices. The merger company can occupy up to 50% of the Russian market. Sanctions should not intervene - Eurasia Drilling specializes in traditional technologies, which are not subject to sanctions.

The deal on Eurasia Drilling takeover by Schlumberger will amount to $1.7 bln. Schlumberger will purchase 45.65% of shares in the Russian company. Eurasia Drilling will undergo de-listing on the London Stock Exchange and buy out its shares from minority stockholders. Schlumberger will extend a loan for the shares redemption to the majority shareholders of the Russian company.

The largest co-owners of Eurasia Drilling are Alexander Dzhaparidze with a 30.2% stake (he is also the general director) and Alexander Putilov with 22.4%.

Schlumberger will acquire 45.65% in the company at a price of $22 a share through its subsidiaries after the delisting. However, it is impossible to close the deal without the approval of the Federal Antimonopoly Service and the foreign investments commission, which have not yet sanctioned it until now.

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