TechnipFMC plc (FTI) sold 17.6 million shares of France-based Technip Energies N.V. through a private transaction to HAL Investments, the Dutch investment unit of HAL Holding, N.V., for €11.15 per share totaling gross proceeds of €196.2 million.
TechnipFMC is a global oil and gas company providing complete project life cycle services for the energy industry. FTI shares closed down 2.4% at $6.63 on September 3. (See TechnipFMC stock charts on TipRanks)
Upon completion of the sale of approximately 9.9% of its stake in Technip Energies, FTI will continue to hold roughly 12.3% of Technip Energies’ share capital.
The sale will occur in two stages. Hal will initially buy 8.6 million shares from FTI in the coming days, and the remaining 9 million shares will be sold to HAL upon obtaining customary regulatory approvals, which are expected to be completed in the fourth quarter of 2021.
Moreover, HAL has agreed to a 180-day lock-up period for its shares in Technip Energies.
Additionally, FTI is subject to a 60-day lock-up period for its remaining stake in Technip Energies that ends on October 2, 2021, subject to obtaining a waiver from the Joint Global Coordinators and certain customary approvals.
Recently, Kepler Capital analyst Magnus Olsvik maintained a Hold rating on the FTI stock with a price target of $8.17, implying 23.4% upside potential to current levels.
Olsvik expects FTI to report a loss of $0.37 per share in its third-quarter results scheduled for October 27, 2021.
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 3 Holds. The average TechnipFMC price target of $10.03 implies 51.3% upside potential to current levels. Shares have gained 30.8% over the past year.
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