EXOR, one of Europe’s leading investment companies, announces that it is investing € 103.3 million to acquire 13% of Welltec, the clear global leader in well intervention services for the oil and gas industry. Welltec, which provides efficient and effective robotic solutions for the cleaning, maintenance and repair of oil wells, is based in Denmark and was founded over twenty years ago by Jørgen Hallundbæk, who remains CEO and majority owner of the Company.
The transaction is part of EXOR's investment strategy to also acquire minority participations in companies with high growth potential and to support the development plans of talented entrepreneurs.
For EXOR, it represents an interesting occasion to invest at a time when valuations in the oil and gas sector are low and changes in the industry are creating new opportunities. In the current environment, the need for operators to reduce capital expenditure and extend the life cycle of the existing wells will benefit Welltec, whose robotic technology provides producers with significant financial savings and greater efficiency in the extraction and maintenance processes. In addition, Welltec will benefit from leveraging EXOR’s sound and extensive industrial and technological expertise.
The investment will be achieved by EXOR acquiring part of the participation owned in Welltec by 7-Industries Lux S.à.r.l., a company indirectly owned by EXOR Board Member Ruthi Wertheimer. 7-Industries Group focuses on long lasting minority partnerships in industrial companies led by family anchor shareholders, an investment approach that is in line with that of EXOR for its small investments. After the acquisition, EXOR and 7-Industries Group will each hold 13% of Welltec share capital as long-term shareholders.
EXOR and 7-Industries are related parties pursuant to the regulation on related party transactions adopted by Consob with resolution No. 17221 of March 12, 2010 (the “Regulation”). Further, pursuant to the Regulation and to the internal procedure adopted by EXOR and available on EXOR’s website (www.exor.com) (the “Procedure”), the aforesaid transaction would qualify as a non-significant related party transaction as it would be performed at conditions equivalent to market conditions. The aforesaid transaction has been approved with the favorable vote of all members of the Board of Directors of EXOR with the prior positive opinion of EXOR’s committee on related party transactions. As the transaction does not exceed the parameters of significance set out in Annex 3 of the Regulation and in Article 3 of the Procedures, EXOR will not file an information document concerning this transaction in accordance with the Regulation and the Procedure.