Dec. 6 (Bloomberg) -- Integra Group, a Russian oilfield services provider, received shareholder approval to merge a seismic unit co-owned with Schlumberger Ltd. and a company part- owned by billionaire Gennady Timchenko after minority owners sought to block the deal.
The merger between IGSS, in which Moscow-based Integra holds 75 percent to Schlumberger’s 25 percent, with Geotech Oil Services Holding Ltd.’s seismic business passed with 80.5 percent of the vote at an extraordinary general meeting yesterday, Integra said today in a regulatory filing.
Integra, Schlumberger, Geotech and IGSS agreed on Nov. 9 to combine operations to create what would become “one of the largest land seismic companies globally,” according to a statement at the time. Timchenko’s Volga Resources fund holds 25 percent of Geotech Oil Services.
Following the transaction, Geotech will control the enlarged IGSS with a 52 percent stake and Integra’s ownership would shrink to 36 percent. Schlumberger will hold 12 percent.
Prosperity Capital Management, on behalf of minority shareholders in Integra, planned to vote against the deal because of concerns about Geotech’s debt and a lack of audited financial reports, according to a letter to Integra Chairman John Fitzgibbons.
Prosperity, the largest Russia-focused equity investor with about $5 billion of assets, said it manages investments on behalf of funds that collectively own global depositary receipts representing no more than 20 percent of Integra.
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