Offshore drilling contractor Seadrill (NYSE and OSE: SDRL) has entered into a definitive agreement to acquire UK-based Aquadrill in an all-stock transaction.
Upon closing of the transaction, which is anticipated in mid-2023, Seadrill shareholders will hold 62% while Aquadrill unitholders will own the remaining 38% of the outstanding common shares in the combined company, which will keep the name Seadrill Limited and continue to be domiciled in Hamilton, Bermuda. Aquadrill will become a wholly owned subsidiary of Seadrill.
The transaction has been approved by the Boards of Directors of both companies and values Aquadrill at approximately $958 million.
Seadrill said the combination will create an industry-leading offshore drilling company with a fleet of 12 floaters (including seven 7th generation drillships), three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs, plus seven rigs managed under a variety of strategic partnerships. The combined company will have backlog of $2.8 billion.
Costs synergies from the combination will be approximately $70 million.
“At Seadrill we seek to deliver safe and effective operations as the bedrock for generating returns for our shareholders,” said Simon Johnson, Seadrill’s President and Chief Executive Officer. “Seadrill and Aquadrill have a long and rich strategic and operational management history. Our shared heritage will promote efficient integration of the two companies. I look forward to welcoming the Aquadrill fleet back into the Seadrill family.”
“We believe this combination will create the most value for our shareholders and will create an excellent platform for high quality service delivery to our customers,” said Steven Newman, Aquadrill’s CEO.
Seadrill’s Julie Robertson and Simon Johnson will continue in their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer.
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