McDermott International said its combination with Chicago Bridge & Iron Company (CB&I), creating a premier provider of technology, engineering and construction solutions for the energy industry has been completed.
In accordance with the terms of the business combination agreement, and as a result of the approval by McDermott stockholders of the 3-to-1 reverse stock split resolution, CB&I shareholders will receive 0.82407 shares of McDermott common stock for each share of CB&I common stock tendered in the exchange offer.
Each remaining share of CB&I common stock held by CB&I shareholders not acquired by McDermott in the exchange offer was effectively converted into the right to receive the same 0.82407 shares of McDermott common stock that will be paid in the exchange offer, together with cash in lieu of any fractional shares of McDermott common stock, less any applicable withholding taxes.
As a result of the combination, CB&I common stock will no longer be listed on the New York Stock Exchange and will cease trading prior to the open of the market on May 11, 2018.
David Dickson, president and CEO of McDermott, said, “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification and gas processing technologies and solutions—creating a company that spans the entire value chain from concept to commissioning.”
As previously informed, David Dickson is president and CEO of McDermott and Gary Luquette will continue as non-executive chairman of the board of directors.
McDermott will be organized by geographic areas, North, Central & South America, Europe, Africa, Russia & Caspian, Middle East & North Africa, and Asia Pacific, with an executive presence in each area, supported by Global Project Execution and Delivery functions, to drive operational excellence and deepen relationships with local customers.
CB&I’s former technology business, now called Lummus Technology, will continue to operate as a distinct licensing, catalyst, engineering and after-market services business.