Total to Raise as Much as $1 Billion With Hellman Via GTT IPO

Total SA (FP) and private equity firm Hellman & Friedman LLC will raise as much as 776 million euros ($1 billion) from the initial public offering of Gaztransport & Technigaz SA, an engineering company part-owned by GDF Suez SA. (GSZ)

Total Gas & Power Actifs Industriels and Hellman & Friedman will offer 13.5 million current shares in the maker of liners for liquefied natural gas tankers at 41 euros to 50 euros, with an option to sell an extra 15 percent, GTT said in a statement.

After the sale, due to end Feb. 26, the Saint-Remy-les-Chevreuse-based company may be 40.4 percent-held by GDF Suez, with Total and Hellman owning about 8.76 percent, down from 30 percent. Trading will begin on Euronext in Paris on Feb. 27.

GTT will issue 76,000 new shares reserved for employees.

Demand for LNG transportation and storage is growing to replace generation by nuclear power stations shuttered by Japan after the Fukushima atomic meltdown. GTT’s technology is used by shipbuilders such as Samsung Heavy Industries Co., Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co.

The Total and H&F offer includes a global private placement and the public sale in France. Morgan Stanley is coordinator for the global offering and joined by Deutsche Bank AG, Lazard and Natixis as lead managers and bookrunners for the sale.

GTT reported net income of 118.7 million euros in 2013 on sales of 217.6 million euros, according to the IPO document. That’s an increase from net income of 39.6 million euros for the previous year on sales of 89.5 million euros.

Earnings Margin

The margin on earnings before interest, tax, depreciation and amortization was 54 percent in 2012, and 67 percent in the first nine months of 2013, according to a company presentation.

Moss Maritime AS is among competitors, GTT said.

Growth is expected as a U.S. shale-gas boom spurs exports to Japan and South Korea, where demand for the fuel is rising after nuclear plants were closed, according to the CEO.

GTT plans to capture 84 percent to 87 percent of the market for new LNG carriers through 2023, the IPO document says. It also sees market expansion in so-called bunkering, or increased use of smaller vessels, as well as expanded use of its membranes in onshore storage equipment and cryogenic pipelines.

Hellman invested in the company in 2008 when the business was valued at 1.1 billion euros, he said in December.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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