Technip Energies Lists Publicly, Separating From TechnipFMC

Updated 3 months 3 weeks ago

In August 2019, TechnipFMC announced its board of directors has unanimously approved a plan to separate into two independent, publicly-traded companies: technology and manufacturing company RemainCo (TechnipFMC) and engineering and construction (E&C) service provider SpinCo (Technip Energies). The transaction is expected to be structured as a spin-off of TechnipFMC’s Onshore/Offshore segment. The separation is expected to be completed in 1H 2020, subject to customary conditions, consultations, and regulatory approvals, at which time outstanding shares of SpinCo will be distributed to existing TechnipFMC shareholders.

Technip Energies will have 15,000 employees led by CEO Catherine MacGregor and headquartered in Paris. This company will be incorporated in the Netherlands and listed on the Euronext Paris exchange, and Bruno Vibert will serve as CFO. TechnipFMC will have 22,000 employees and maintain the existing management and headquarters of TechnipFMC. Signficant shareholder Bpifrance supports the transaction. A January 2020 announcement reaffirmed a planned completion date in 1H 2020, and the deal was placed on hold in March due to commodity price declines.

In January 2021, activities were resumed with a planned listing of 50.1% of shares in Technip Energies on Euronext Paris to be completed in the first quarter of 2021. Bpifrance also plans to acquire $200 million in shares directly from TechnipFMC as a long-term holding in Technip Energies. Pro forma, TechnipFMC will have $1.7 billion in net debt with Technip Energies holding $2.7 billion in cash less debt. Technip Energies will be incorporated in the Netherlands with headquarters in Paris.