CGG SA, the troubled French oilfield surveyor, said it will sell as much as 350 million euros ($379 million) of new shares at a 72 percent discount to finance its turnaround plan as a slump in crude prices curbs demand for its services from exploration companies.
“This capital increase of 350 million euros will be entirely dedicated to financing the transformation of CGG,” Chief Executive Officer Jean-Georges Malcor said Wednesday in a statement. It will allow the company to reduce its reliance on loans, according to the statement.
Each shareholder will receive one preferential subscription right for every share held as of the close on Wednesday. The price has been set at 66 euro cents apiece on the basis of 3 new shares for each held. That represents a 72 percent discount to the closing price on Monday and a 39 percent discount to the so-called theoretical ex-right price, the company said.