Ensco, Atwood shareholders approve all-stock merger

Shareholders of offshore drillers Ensco and Atwood Oceanics have approved the previously proposed merger of the two companies.

Ensco on Thursday said 65 percent of its shareholders had voted in favor of the allotment and issuance of Ensco Class A ordinary shares to shareholders of Atwood Oceanics, Inc. in connection with the all-stock acquisition of Atwood at the Company’s general meeting of shareholders on 5 October 2017.

Carl Trowell, Ensco’s President and Chief Executive Officer, said, “We are extremely pleased that Ensco shareholders recognized the strategic and financial merits of our combination with Atwood. This transaction is a significant milestone for Ensco as we continue to execute our strategic plan to emerge from the market downturn as the clear leader in the offshore drilling sector.”

Atwood currently owns 9 mobile offshore drilling units and is constructing two ultra-deepwater drillships.

Trowell added: “By acquiring Atwood at a pivotal time in the market cycle, we are purchasing high-quality assets at compelling prices as values for the highest-specification assets are at a critical inflection point. Additionally, these high-specification assets will further our ability to meet increasing customer demand and strengthen our competitive position, which coupled with significant expected synergies, will generate meaningful, long-term value for all shareholders.”

Separately, Atwood also said that its shareholders voted to adopt the merger agreement with Ensco at a special meeting of Atwood shareholders. More than 98 percent of votes cast and 70 percent of shares outstanding were voted in favor of the transaction.

The companies anticipate the closing of the transaction will occur within one business day, assuming all other customary closing conditions are met.

 Offshore Energy Today Staff