Summary
SLB Limited/NV (SLB) has filed an 8-K report detailing the sale of a significant portion of its stake in Atos Origin SA. On February 2, 2004, a subsidiary, Schlumberger Investments Limited, agreed to sell 9.6 million ordinary shares of Atos Origin at EUR52.95 per share to institutional investors. This transaction is expected to generate gross proceeds of approximately EUR508 million, or $630 million. These proceeds are slated for application towards debt reduction, which is a positive signal for the company's financial leverage. The shares being sold were originally received as part of the consideration for the divestiture of certain SchlumbergerSema businesses to Atos Origin. Following this sale, SLB will retain approximately 14.5% of Atos Origin's share capital, and the remaining investment will be accounted for using the cost method, indicating a reduced level of influence or control.
Key Highlights
- 1SLB subsidiary sells 9.6 million Atos Origin shares to institutional investors.
- 2Gross proceeds from the sale are approximately EUR508 million ($630 million).
- 3Net proceeds are intended to be used for debt reduction.
- 4The shares sold were part of the consideration for the sale of SchlumbergerSema businesses to Atos Origin.
- 5The sale is expected to be essentially breakeven from a valuation perspective.
- 6SLB's remaining stake in Atos Origin will be approximately 14.5% of share capital.
- 7Remaining investment in Atos Origin will be accounted for using the cost method.