ADES makes $380M takeover bid for Shelf Drilling

August 5, 2025, by Dragana Nikše

A subsidiary of ADES Holding Company, which is part of Saudi Arabia-headquartered ADES Group, has signed an agreement with UAE-based Shelf Drilling to acquire the latter’s business.

The proposed takeover will be carried out by way of a cash merger under the laws of the Cayman Islands between ADES International Cayman (BidCo) and Shelf Drilling. Following completion, which is expected to close in Q4 2025, the latter will be wholly owned by ADES and delisted from the Oslo Stock Exchange.

As disclosed, the cash consideration per Shelf Drilling share corresponds to an equity value of Shelf Drilling of approximately NOK 3.9 billion, or around $380 million.

The transaction is subject to customary closing conditions, including approval by an extraordinary general meeting of Shelf Drilling’s shareholders to be held on September 16. The board believes the transaction represents a fair value for shareholders and intends to recommend it.

ADES believes the acquisition will establish a strong global player in shallow-water drilling with a fleet of 83 offshore jack-ups, including 46 premium units. The duo’s total combined backlog on June 30, 2025, stood at $ 9.45 billion.

The Saudi Arabian player also expects to realize annual operational cost synergies of $ 40-50 million with gradual realization over the medium term, along with associated costs to achieve these synergies. Additionally, the company will settle Shelf Drilling’s existing debt obligations.

ADES’ Admarine 12 jack-up barge was recently involved in an incident in the Gulf of Suez. The rig capsized while being towed to a new location, leading to the death of four persons, while three are missing.

Meanwhile, Shelf Drilling recently scored one new contract in the UK and an extension offshore Egypt.