TechnipFMC Plc said Sept. 3 it had sold a 9.9% stake in Technip Energies to Dutch investment company HAL Investments for 196.2 million euros (US$233.03 million) through a private transaction.

This past February, TechnipFMC completed the spinoff of its engineering and construction activities into a separate entity, Technip Energies. At closing of the spinoff, TechnipFMC retained a direct stake of 31% of Technip Energies’ share capital, which it has since partially monetized. 

Upon completion of the sale to HAL investments, TechnipFMC said it will retain a direct stake of approximately 12.3% of Technip Energies’ share capital, which analysts with Tudor, Pickering, Holt & Co. (TPH) estimate is worth about $290 million.

“Good to see FTI continue to make quick work in monetizing its equity stake in Technip Energies... Upon settlement (~half of which will occur in early Q4’21) and including the private placement transaction that FTI already executed in late-July, FTI will have added >$400MM of cash to the balance sheet via the sale of TE shares,” the TPH analysts wrote in a Sept. 3 research note.

The analysts also noted the importance of TechnipFMC’s remaining stake in Technip Energies, adding: “We find this important to point out because it doesn’t feel to us like the market is currently affording FTI any credit for its TE stake (stock now trading at an eye-popping <7x FY’22 EV/EBITDA).”

The sale of an incremental 17.6 million shares of Technip Energies stock was sold to HAL Investments at 11.15 euros per share. HAL also agreed to a lock-up of 180 days for its shares in Technip Energies, according to the release.

($1 = 0.8420 euros) 

Reuters contributed to this article.

Comments