Jack-up rig specialist Shelf Drilling’s board of directors has approved a share issuance in relation to the previously announced agreement with China Merchants for the acquisition of two newbuild offshore rigs.
To remind, Shelf Drilling in February reached an agreement to buy two newbuild jack-ups for $87 million apiece, and charter two more rigs with an option to buy, from China Merchants.
As part of the deal, Shelf entered into an agreement to “pay” for the rigs by issuing the company’s shares to CM and its affiliate , whereby the CM entities would subscribe for New Common Shares for a total subscription amount of $174 million, which equals the aggregate purchase price for the two jack-ups.
In a statement on Monday, May 6, Shelf said its directors resolved to approve the issuance of the 26,769,230 New Common Shares, each with a par value of USD 0.01, to Wealthy Marvel International Limited (an affiliate of CM) and Wealthy Marvel Enterprises Limited (a joint venture between CM and CMIC Ocean En-Tech Holding Co., Ltd. (formerly known as TSC Group Holdings Limited) at a subscription price per New Common Share of USD 6.50.
Completion of the transaction, including the issuance of the New Common Shares, is expected to take place on or about May 9 2019, subject to the successful completion of the rig acceptance by the company and certain other customary conditions, Shelf said.
“The company and the board of directors have prepared a prospectus for the listing of the New Common Shares on the Oslo Stock Exchange in the form of depository receipts/securities registered in VPS. The prospectus is expected to be approved by the Financial Supervisory Authority of Norway on or about May 7, 2019, and published on or about May 9, 2019,” Shelf added.
Offshore Energy Today Staff
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