7:06 AM, Aug 15, 2017 — Transocean (RIG), a Swiss offshore drilling company, has agreed to acquire Norwegian rival Songa Offshore for 9.1 billion Norwegian kroner ($1.14 billion) as it seeks to strengthen its position in ultra deep-water drilling.
The Zug-headquartered company is offering 47.50 kronor per share of Songa Offshore, a 37.0% premium to Songa Offshore’s five-day average closing price, the company said on Tuesday. The enterprise value of the transaction totals about 26.4 billion Norwegian kroner.
Songa operates four harsh environment, semi-submersible drilling rigs based on long-term contracts with Norway’s largest oil company Statoil (STO), which will now become part of Tarnsocean’s fleet, along with three additional semi-submersible drilling rigs.
“Songa Offshore is an excellent strategic fit for Transocean,” Jeremy Thigpen, Transocean’s chief executive said. “With this combination, we add four new state-of-the-art Cat-D semisubmersible rigs to our existing fleet, further enhancing our position in the harsh environment market.”
The deal, which is expected to close in the fourth quarter, increases Transocean’s contracted backlog by $4.1 billion to a combined total of $14.3 billion. The company expects the deal to generate annual cost savings of about $40 million.
Companies: Transocean Ltd.
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