Ensco closes Atwood acquisition

UK offshore driller Ensco on Friday completed its acquisition of the U.S.-based rival Atwood Oceanics. 

Ahead of the completion, shareholders of both companies on Thursday approved the proposed merger.

Ensco said that 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 in connection with the all-stock acquisition of Atwood at the company’s general meeting of shareholders on October 5.

Atwood’s shareholders also voted to adopt the merger agreement with Ensco with more than 98 percent of votes cast and 70 percent of shares outstanding in favor of the transaction.

On Friday, Ensco said that, under the terms of the merger agreement, Atwood shareholders are entitled to receive 1.60 Ensco Class A ordinary shares for each share of Atwood common stock they own.

Ensco and Atwood shareholders will own approximately 69% and 31%, respectively, of the outstanding shares of the combined company. In connection with the completion of the transaction, Atwood common stock has ceased trading on the New York Stock Exchange.

Carl Trowell, Ensco’s President and Chief Executive Officer, said, “Today is an important day in our company’s history. Ensco has used timely acquisitions to grow into one of the leading offshore drilling companies, and the acquisition of Atwood is another major milestone in our progression. We are excited to complete this transaction and to welcome our new employees, customers and shareholders to an even stronger Ensco.”

Now that the transaction has been completed, the combined company has a fleet of 63 rigs, comprised of ultra-deepwater drillships, deep- and mid-water semi-submersibles and shallow-water jack-ups.

The expanded fleet of 37 jack-up rigs, including 27 premium units, now makes Ensco the largest jack-up operator in the world.

The estimated enterprise value of the combined company is $6.9 billion, based on the closing price of each company’s shares on May 26, 2017.

Offshore Energy Today Staff