Summary
SLB Limited/NV (SLB) has announced a significant divestiture of its SchlumbergerSema businesses through a binding agreement with Atos Origin. The transaction involves a cash component of €400 million and the transfer of approximately 29% of Atos's common shares, which SLB intends to reduce to 19% post-closing. This strategic move aims to streamline operations and focus on core business areas. The deal is anticipated to close in January 2004, pending shareholder and regulatory approvals. In addition to the divestiture, SLB will recognize substantial charges in the third quarter. This includes an $86 million after-tax charge related to debt extinguishment. Furthermore, a significant pre-tax charge of $398 million ($205 million after-tax and minority interest) will be recorded for the impairment of WesternGeco's multiclient library, with approximately 70% of this charge attributable to North American surveys. These charges reflect adjustments to business conditions and the company's strategic realignments.
Key Highlights
- 1SLB signs a binding agreement to sell the majority of its SchlumbergerSema businesses to Atos Origin.
- 2The transaction consideration includes €400 million in cash and 19.3 million Atos shares (approximately 29% ownership).
- 3SLB plans to reduce its Atos shareholding to 19% after the closing.
- 4The sale is expected to close in January 2004, subject to regulatory and shareholder approvals.
- 5SLB will record a second and final after-tax charge of $86 million for debt extinguishment.
- 6A pre-tax charge of $398 million ($205 million after-tax and minority interest) will be recognized for the impairment of WesternGeco's multiclient library.
- 7Approximately 70% of the WesternGeco impairment charge is related to North American surveys.