TechnipFMC (FTI) said it would resume its planned spinoff into two publicly traded companies, with the separation expected to be completed in the first quarter of the year.
The company had previously halted the spinoff in March due to market volatility caused by the COVID-19 pandemic.
The two companies to come out of the spinoff will be TechnipFMC, a technology and services provider, and Technip Energies, an engineering and technology company. The company said the separation would improve the two firm's focus on their respective strategies and provide improved flexibility and growth opportunities.
The company will distribute 50.1% of the outstanding shares in Technip Energies to existing TechnipFMC shareholders on a pro rata basis. TechnipFMC will retain ownership of the remaining 49.9% of Technip Energies.
Bpifrance, a substantial shareholder of TechnipFMC since 2009, intends to invest $200 million in Technip Energies by acquiring shares from TechnipFMC's retained stake in Technip Energies, the company said. RTRS