French seismic player, CGG, has launched a €350-million rights offering to existing shareholders as part of its plan lined up to transform from a seismic acquisition company into an integrated geosciences group.
This capital increase is the next step in CGG’s transformation plan in order to adjust to new market conditions following the fleet reduction to five vessels and global workforce downsizing by some 930 positions.
According to the company, the net proceeds will be used principally to cover the shortfall in the consolidated net working capital of CGG of some $175 million for 2016 and to finance its activities, which would allow CGG to reduce its reliance on drawings under the Group’s revolving credit facilities.
3 new shares for 1 existing share
CGG said that each of its shareholders will receive one preferential subscription right for every share it holds as of the close of trading on January 13, 2016. The subscription price for the new shares has been set at €0.66 per share on the basis of 3 new shares for 1 existing share.
The subscription period for the new shares will run January 14 – 27, 2016. Deadline for the preferential subscription rights is January 13, 2016. The preferential subscription rights will be listed and traded on Euronext Paris.
Settlement and delivery and start of trading of the new shares is announced for February 5 this year.