Technip buys control of Krebs-Speichim, sells Cogema stake

18 September 2000 17:29  [Source: ICIS news]

LONDON (CNI)--French contractor Technip said Monday it is to take full control of its chemical plant engineering joint venture Krebs-Speichim.

It will pay joint venture partner SGN, part of French nuclear group Cogema, Euro21.7m ($19m) for the 50% stake in Krebs-Speichim it did not already own. Krebs-Speichim will be integrated into Technip in the two product lines: chemicals/fertilisers and life sciences.

At the same time, Technip has agreed to sell its 3.2% stake in Cogema to French financial body Caisse des Depots et Consignations for Euro151.6m.

The two agreements follow the exchange in 1997 of Technip's 34% stake in SGN for a 3.5% stake in Cogema (this stake was reduced to 3.2% at the end of 1999) and the merger of SGN's Krebs with Technip's Speichim.

Technip said in a statement: "With the merger [of Krebs and Speichim] having allowed the creation of a leader in the field of chemical plant engineering …the two parties decided recently to give Krebs-Speichim greater possibilities for development by integrating the company even more completely within the Technip group."

Technip said the purchase of the Krebs-Speichim stake will produce an acquisition goodwill of Euro13.7m in its consolidated accounts, resulting in an annual amortisation charge of Euro690 000 over 20 years. It said the sale of the Cogema stake will result in net cash proceeds, after capital gains tax, of Euro140.7m and a net capital gain of Euro59m.

By: Anna Jagger
+1 713 525 2653

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