HAMILTON, BERMUDA: Seadrill Limited entered right into a definitive merger settlement under which Seadrill will purchase Aquadrill in an all-stock transaction.
Upon completion of the transaction Seadrill shareholders and Aquadrill unitholders will personal 62% and 38%, respectively, of the excellent common shares within the Company.
The transaction values Aquadrill at an implied fairness worth of roughly US$958 million, based on Seadrill’s 30-day volume-weighted common share price on the NYSE of US$31.25 as of twenty-two December 2022.
The mixture creates an industry-leading offshore drilling company, with a contemporary and excessive 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 even be well-positioned for additional growth given its stronger credit score and liquidity profile, and to present attractive money flows.
Commenting on the transaction, Simon Johnson, Seadrill’s President and Chief Executive Officer, said, “At Seadrill we search to ship safe and efficient operations because the bedrock for producing returns for our shareholders. Seadrill and Aquadrill have a lengthy and wealthy strategic and operational administration history. Our shared heritage will promote environment friendly integration of the 2 companies. I look ahead to welcoming the Aquadrill fleet again into the Seadrill family.” Steven Newman, Aquadrill’s Chief Executive Officer, said, “We believe this mixture will create the most worth for our shareholders and can create an excellent platform for excessive high quality service supply to our customers.”
The transaction has been approved by the Boards of Directors of each Seadrill and Aquadrill. The required approval of Aquadrill’s unitholders has additionally been obtained. The transaction doesn’t require Seadrill shareholder approval.
The Company will stay named Seadrill Limited and can proceed to be domiciled in Hamilton, Bermuda. Julie Robertson and Simon Johnson will proceed of their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer.