CGGVeritas Receives Approval for Wavefield Tender Offer

CGGVeritas announced today that the Company's voluntary exchange tender offer for 100% of the shares of Wavefield Inseis has received formal approval from the Oslo Stock Exchange pursuant to Chapter 6 of the Norwegian Securities Trading Act.

The French Autorite des marches financiers had granted its visa No. 08-263 on CGGVeritas' prospectus regarding the issue and admission to trading of the CGGVeritas shares to be issued as consideration in the Offer on November 24, 2008.

The Offer will be open from Thursday, November 27, 2008 until Friday, December 12, 2008, 5:30 pm (CET).
In the context of this Offer, CGGVeritas will offer eligible Wavefield shareholders one newly issued CGGVeritas share for each seven Wavefield shares.

  • Aggregate equity value implied by the transaction is approximately $310 million based on the closing price of CGGVeritas and Wavefield on November 7, 2008, an implied 31% premium for the Wavefield shareholders
  • The net debt coverage ratios of CGGVeritas remain unchanged post transaction

The proposed combination presents a strong strategic rationale and is immediately accretive to both earnings and cash flow per share. Bringing the two companies together will strengthen the technology position across Services and Equipment in the high-end market.