Houston’s Northern Offshore to Be Acquired By Chinese Company

Houston-headquartered offshore drilling firm Northern Offshore Ltd. (NOF) says it has reached a deal for the all-cash sale of the corporate to the Chinese firm Shandong Offshore Company Limited.

Under the deal, the Shandong Offshore will purchase all shares of NOF for the acquisition worth of NOK 7.59 per share, for a complete worth of roughly NOK 1.3 billion (US $165 million).

The acquisition will likely be carried out beneath Bermuda legislation, the place NOF relies.

The acquisition is topic to approval of NOF shareholders at a particular basic assembly anticipated to be held on or about July 15, 2015. The phrases of the sale have been unanimously really useful by the board of administrators of NOF because the deal “represents an attractive valuation for NOF shareholders today” and “an opportunity for NOF shareholders to realize their entire investment in NOF, in cash at a premium without the risks associated with public market sentiment and the current economic environment,” NOF mentioned in an announcement.

If finalized, the acquisition is anticipated to develop into efficient throughout the first half of August 2015.

NOF says that the consideration will likely be financed from the Shandong Offshore’s present money assets.

Shandon Offshore additionally owns Blue Ocean Drilling, which can be headquartered in Houston.

“The acquisition of Northern Offshore Ltd. is a positive step in our vision of building a high-performing offshore drilling organization to meet the current and future needs of the Global E&P sector,” mentioned Sun Yuanhui, Chairman of Blue Ocean Drilling. “By retaining the NOF leadership team, when combined with our Blue Ocean Drilling leadership, we will have assembled a highly skilled and experienced team to direct and execute on our strategies as the new Northern Offshore Ltd. going forward.”

Commenting on the Acquisition, Gary W. Casswell, President and CEO of NOF mentioned:

“This transaction represents a major milestone in Northern Offshore’s previously stated strategy to transform our company to a niche, premium jackup drilling contractor with new, state of the art assets. With the exception of the Norwegian continental shelf, NOF will be able to operate in all major petroleum resource regions around the world. Combining the four (4) under construction high spec jackups of Blue Ocean Drilling with Northern Offshore’s two (2) under construction state of the art jackups with deliveries in 2016 thru early 2018, we will realize organizational synergies and have the opportunity to build additional critical mass in our current operations in the North Sea and Asia Pacific as well as position us to pursue new clients in new areas.”

Northern Offshore Ltd. was created in July 2000 and reorganized into its present kind on June 2, 2005 when a brand new Board of Directors was elected. The firm was listed on the Oslo Stock Exchange in September 2007 and trades beneath the image “NOF”.

The firm at present owns 4 drilling models working in South Asia, the North Sea, West Africa and one floating manufacturing unit working within the Northern U.Okay. North Sea. In addition, the corporate has two excessive spec LeTourneau Super 116E jackups beneath building.