Summary
SLB LIMITED/NV (SLB) filed an 8-K on October 15, 2003, reporting a significant divestiture and its pro forma financial implications. The company announced on September 22, 2003, that it had signed a binding agreement to sell the majority of its SchlumbergerSema businesses to Atos Origin. This transaction is expected to close in January 2004, subject to shareholder and regulatory approvals. The sale consideration includes €400 million in cash and approximately 19.3 million shares of Atos common stock, representing about 29% ownership initially. SLB plans to reduce its stake to 19% shortly after closing. The filing provides unaudited pro forma financial statements to illustrate the impact of this sale and the subsequent reduction in Atos ownership on the company's balance sheet and statements of operations. The proceeds from these transactions are intended to be used for debt reduction.
Key Highlights
- 1SLB has entered into a binding agreement to sell the majority of its SchlumbergerSema businesses to Atos Origin.
- 2The transaction includes a cash component of €400 million and 19.3 million shares of Atos common stock.
- 3SLB intends to reduce its ownership in Atos to 19% shortly after the transaction closes, from an initial approximately 29%.
- 4The sale is expected to close in January 2004, subject to customary approvals.
- 5The company is providing pro forma financial information to show the expected impact of these transactions on its financial statements.
- 6Proceeds from the sale and the subsequent sale of Atos stock will be used to pay down existing debt instruments.
- 7The pro forma financial statements are based on information available as of the announcement date and include certain assumptions regarding stock price and exchange rates at closing.