FMC Technologies to Exercise Rights Relating to MODEC International LLC
Tokyo, Jul. 23, 2004
MODEC, Inc. (TSE: 6269) announced today that it has received the notification from FMC Technologies, Inc. (NYSE: FTI) of its intent to exercise its right to acquire common shares of MODEC, Inc. under its existing agreement.
Upon FMC Technologies' notification, MODEC (U.S.A.), Inc., wholly owned subsidiary of MODEC, Inc. is obligated to purchase FMC Technologies' 37.5 percent ownership in MODEC International LLC. MODEC (U.S.A.), Inc. will pay FMC Technologies any difference between its interest in MODEC International LLC and the market value of newly issued shares of MODEC, Inc., including the cost of FMC Technologies' acquisition of those shares.
MODEC, Inc. has the right, under its agreement, to determine the amount of common stock issued to FMC Technologies.
MODEC, Inc. expects the transactions to be completed by the end of 2004.