Bpifrance, a substantial shareholder of TechnipFMC, has agreed to an investment of $100 million in Technip Energies, which has been acquired from TechnipFMC’s retained stake in the company.
TechnipFMC’s share purchase agreement with Bpifrance is related to its recent separation into two independent, publicly traded companies – TechnipFMC and Technip Energies.
The shares acquired by the French national investment bank Bpifrance through this investment are in addition to those received through the dividend distribution made at the time of separation to all shareholders of TechnipFMC.
The investment reflects Bpifrance’s commitment as a long-term reference shareholder of Technip Energies, according to TechnipFMC.
The sale of shares to Bpifrance reduced the company’s ownership in Technip Energies to 82.3 million ordinary shares. TechnipFMC’s current stake in the new company was valued at $1.2 billion as of the market close on 31 March 2021.
The latest deal has increased Bpifrance’s stake in Technip Energies to approximately 7%.
Bpifrance had previously provided funding of $200 million for the purchase of Technip Energies’ shares from TechnipFMC.
TechnipFMC said it will refund $100 million to Bpifrance as a result of their revised level of investment.
Also, the company set out the intention to significantly reduce its shareholding in Technip Energies over the next 18 months.
Nicolas Dufourcq , CEO of Bpifrance, said: “Bpifrance’s increase in capital illustrates our confidence in Technip Energies’ diversification strategy and in its positioning resolutely focused on accelerating the energy transition, which creates sustainable value”.
Arnaud Pieton , CEO of Technip Energies, added: “This is a clear endorsement of our operational robustness and vision to accelerate the journey to a low carbon society “.
Paris-based Technip Energies is focused on engineering and technology for the energy transition with positions in LNG, hydrogen and ethylene, with growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management.
With this investment, the French national investment bank is supporting Technip Energies’ energy transition-focused strategy.