Offshore boring companies Seadrill Limited as well as Aquadrill (ex lover-Seadrill Partners) on Thursday introduced a clear-cut merging arrangement under which Seadrill will certainly obtain Aquadrill in an all-stock deal.
When the deal is finished, Seadrill investors as well as Aquadrill unitholders will certainly possess 62% as well as 38% of the usual shares in the brand-new firm, specifically.
Based on Seadrill’s 30-day volume-weighted typical share cost of US$ 31.25 on the NYSE since December 22, 2022, the bargain offers Aquadrill a suggested equity worth of regarding US$ 958 million.
“The combination creates an industry-leading offshore drilling company, with a modern and high specification fleet and a streamlined cost structure. The company will be well-placed to realize estimated annual run rate synergies of at least US$70 million. The company will also be well-positioned for further growth given its stronger credit and liquidity profile, and to provide attractive cash flows,” Seadrill stated in a declaration.
Simon Johnson, Seadrill’s President as well as Chief Executive Officer, stated, “At Seadrill we seek to deliver safe and effective operations as the bedrock for generating returns for our shareholders. Seadrill and Aquadrill have a long and rich strategic and operational management history. Our shared heritage will promote efficient integration of the two companies. I look forward to welcoming the Aquadrill fleet back into the Seadrill family.” Steven Newman, Aquadrill’s Chief Executive Officer, stated, “We believe this combination will create the most value for our shareholders and will create an excellent platform for high quality service delivery to our customers.”
The deal has actually been authorized by the Boards of Directors of both Seadrill as well asAquadrill The needed authorization of Aquadrill’s unitholders has actually likewise been gotten. The deal does not need Seadrill investor authorization.
Seadrill stated the merging would certainly produce “a leading offshore driller with best-in-class fleet” which will certainly remain in a solid setting to offer a wider variety of consumers, with among the youngest as well as most highly innovative fleets in the market, as well as a integrated stockpile of US$ 2.8 billion.
The firm will certainly possess 12 drifters, 7 of which are 7 th generation drillships, 3 extreme setting gears, 4 benign jack-ups, as well as 3 tender-assisted gears. Additionally, 7 gears will certainly be handled under a selection of critical collaborations.
Seadrill likewise stated that the brand-new firm would certainly have “a diversified portfolio of contract coverage, with additional active fleet capacity to deploy in a rising market environment across critical basins in the Golden Triangle.”
With the merging come harmonies as well as financial savings of “at least US$70 million annually on a run-rate basis.” All harmonies are anticipated to be completely understood within 2 years of shutting the deal.
Synergies are anticipated to be created with a mix of: administration cost optimization; G&An as well as overhanging expense financial savings; logistics, supply chain as well as supply performances; as well as capital investment financial savings.
The firm ought to take advantage of a boosted capital account as well as a strengthened annual report, with substantial credit report as well as liquidity renovation, as well as with accessibility to a possibly reduced expense of resources, Seadrill stated.
Following conclusion of the deal, Aquadrill will certainly end up being an entirely had subsidiary ofSeadrill Subject to required governing authorizations being gotten the deal as well as is anticipated to enclose mid-2023.
The combined firm will certainly stay called Seadrill Limited as well as will certainly remain to be domiciled in Hamilton,Bermuda Julie Robertson as well as Simon Johnson will certainly proceed in their corresponding duties as Chair of the Board of Directors, as well as President as well asChief Executive Officer
As of November 30, 2022, Seadrill as well as Aquadrill had a consolidated cash money equilibrium of regarding US$ 628 million, consisting of around US$ 133 million in limited cash money, as well as a consolidated financial debt equilibrium of around US$ 521 million.
