Offshore Drillers Ensco and Rowan Complete Merger

Ensco 9 drillship. Photo: EnscoRowan

The previously announced merger between offshore drillers Ensco plc and Rowan Companies closed Thursday with overwhelming support from each company’s shareholders.

The new company, named EnscoRowan, will trade on the New York Stock Exchange under the ticker symbol ESV.

The closing of the transaction follows the satisfaction the deals closing conditions including overwhelming approval of shareholders and regulatory approval in the UK.

EnscoRowan will maintain its headquarters in London, England, with a significant presence in Houston, Texas. The combined fleet is made up of a diverse rig fleet of 16 drillships, 12 semisubmersibles, 54 jackups and 2 deepwater managed units.

Under the terms of the transaction agreement, Rowan shareholders received 2.750 Ensco shares for each Rowan share owned immediately prior to closing. Legacy Ensco and Rowan shareholders make up approximately 55% and 45%, respectively, of the outstanding shares of EnscoRowan. Following the closing of the transaction, ordinary shares of the combined company were consolidated through a 4:1 reverse stock split, resulting in approximately 197 million ordinary shares outstanding.

Tom Burke, EnscoRowan’s President and Chief Executive Officer, said, “The successful completion of our merger further enhances our market leadership with a fleet of high-specification floaters and jackups and diverse customer base. Our growing geographic presence, technologically-advanced drilling rigs and talented employees position us exceptionally well to meet increasing and evolving customer demand. I look forward to executing on the significant long-term growth opportunities we believe we can capture from our combined strengths as the offshore sector recovers.”