By OGJ editors
HOUSTON, May 20 -- Italy's Saipem SPA, a unit of ENI SPA, has entered into a definitive agreement with Bouygues Construction SA to acquire the company's 51.1% majority stake in Bouygues Offshore SA in a deal valued at close to 1 billion euros.
Saipem's May 8 offer of 60 euros/share—which is being billed by the company as "the largest cross-border acquisition in Europe in the oil field services sector"—is a 25% premium over Bouygues Offshore's 1-month average share price, according to Saipem.
Bouygues Construction's board has recommended shareholders accept Saipem's offer. Saipem, meanwhile, has been reported as saying that it would extend another 60 euros/share offer for the remaining public shares of Bouygues Offshore once it receives antitrust clearance for its first deal; antitrust clearance is expected by the end of June or the beginning of July.
"The new group would be a truly worldwide contractor," Saipem noted about the deal, adding that the combined firm's operations would maintain a "strong" presence in West Africa, the former Soviet Union, Central Asia, North Africa, the Middle East, and Southeast Asia.
"The combination of Saipem's recognized construction capabilities. . .and Bouygues Offshore's powerful engineering and project management capabilities would create a truly formidable global. . .contractor," Saipem said.
For fiscal year 2001, Saipem and Bouygues Offshore have reported combined revenues of 3 billion euros and a net income of 214 million euros.