TGS-NOPEC Geophysical has submitted a conditional offer to purchase the multi-client data library of PGS for $600 million. The proposal suggests that the companies entered into a collaboration agreement for future PGS multi-client projects which includes preference to use the PGS 3D acquisition fleet for future TGS projects. The offer assumes an effective date of July 1, 2020. PGS reported a $565 million book value for their multi-client library in the second quarter.
TGS plans to finance the deal with a new $200 million term loan facility and an equity offering. The offer is valid until August 16, 2020. ABG Sundal Collier acted as financial advisor to TGS.