TGS Disappointed by PGS’ Rejection

August 14, 2020

A PGS vessel - Credit: PGS

A PGS vessel – Credit: PGS

Norwegian oil and gas seismic data supplier TGS is disappointed with the decision by rival company PGS to reject its $600 million offer for its multi-client library.

TGS had earlier this month offered to acquire PGS’ multi-client data for $600 million, however, the PGS board on Thursday rejected the offer deeming it opportunistic.

“The Board has unanimously concluded to reject the TGS proposal. The Board of PGS is of the view that the value of the Company’s MultiClient data library is significantly greater to PGS than that represented by the TGS proposal, and that the timing of the proposal is opportunistic given the current market backdrop and macro-economic environment,” PGS said Thursday.

Responding to PGS’ rejection of the offer, Kristian Johansen, CEO of TGS said Friday morning: “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.”

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