Shareholders say ‘yes’ to $2.7B Transocean-Ocean Rig merger

Offshore drilling companies Transocean and Ocean Rig have informed that their respective shareholders have voted in favor of the previously proposed Transocean’s acquisition of Ocean Rig.

Ocean Rig's Leiv Eiriksson semi-sub / Image by Lundin Petroleum
Ocean Rig's Leiv Eiriksson semi-sub / Image by Lundin Petroleum
Ocean Rig’s Leiv Eiriksson semi-sub / Image by Lundin Petroleum

The two drillers in September entered into a definitive merger agreement under which Transocean was to acquire Ocean Rig in a cash and stock transaction valued at approximately $2.7 billion, inclusive of Ocean Rig’s net debt, subject to,  subject to the approval of both Transocean and Ocean Rig shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Commenting on the approval Jeremy Thigpen, President and CEO of Transocean said: “We are extremely pleased that our shareholders have overwhelmingly approved our acquisition of Ocean Rig. Through this combination, Transocean further enhances our industry-leading fleet of high specification floaters, thus improving our competitive position.

“We are excited to begin actively marketing these assets into the growing list of opportunities we continue to see emerging across our global customer base.”

Thigpen concluded  said: “We look forward to closing the transaction in the coming days and welcoming Ocean Rig’s experienced crews into the company.”

In a separate statement, Ocean Rig, a deepwater drilling specialist, said that holders of 86.76% of the outstanding shares of Ocean Rig voted, of which 99.99% approved the merger.

Ocean Rig has said that at the effective time of the merger, each issued and outstanding share of Ocean Rig immediately prior to such time will be canceled and automatically converted into the right to receive 1.6128 newly issued shares of Transocean and $12.75 in cash. Transocean as the combined entity will remain listed on NYSE under the symbol “RIG.”

Ocean Rig’s fleet is comprised of nine high-specification ultra-deepwater drillships and two harsh environment semi-submersibles, Eirik Raude and Leiv Eiriksson.

Additionally, its fleet includes two high-specification ultra-deepwater drillships currently under construction at Samsung Heavy Industries. These two newbuilds are expected to be delivered in the third quarter of 2019 and the third quarter of 2020, respectively.

Offshore Energy Today Staff