Stock Photo: HASPhotos / Shutterstock.com
Offshore drilling company Seadrill Limited has announced the successful all-stock acquisition of Aquadrill LLC.
The acquisition, valued at $958 million, creates an industry-leading offshore drilling company with a modern and high specification fleet comprised of 12 floaters (including seven 7th generation drillships), three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs. Additionally, seven rigs will be managed under strategic partnerships. The fleet has a combined backlog of $2.6 billion.
As a result, Aquadrill has become a wholly owned subsidiary of Seadrill, with 29,866,505 common shares issued to former Aquadrill unitholders and equity award holders. The transaction has resulted in an issued share capital of $798,665.03, which has been divided into a total of 79,866,503 Seadrill common shares, each with a par value of $0.01.
The acquisition is expected to result in significant synergy potential, increased exposure and upside to the improving market, and strong cash flow generation and further strengthened balance sheet. Costs synergies from the combination will be approximately $70 million.
“We are delighted to have completed the acquisition of Aquadrill, welcoming its fleet back into the Seadrill family,” said Simon Johnson, Seadrill’s President and Chief Executive Officer. “The management team is focused on efficiently and rapidly integrating the two companies in order to realize the synergies arising from the transaction. Today is a crucial milestone for our Company and we firmly believe that we are well-placed for this industry upcycle. We remain optimistic in the continuing development of the rig market and our ability to deliver further value to our shareholders.”
Seadrill will continue to be domiciled in Hamilton, Bermuda, with Julie Robertson and Simon Johnson continuing in their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer. The transaction has also resulted in the appointment of two new members to Seadrill’s Board of Directors, Harry Quarls and Jonathan Swinney, who were approved at Seadrill’s annual general meeting of shareholders on March 21, 2023.
Seadrill will continue to trade on the New York Stock Exchange and the main list of the Oslo Stock Exchange under the ticker “SDRL”.
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