Noble Corporation and Diamond Offshore Drilling announced their intention to merge. In this transaction, Noble Corporation will acquire Diamond in a cash and stock deal valued at $1.59 billion.
For Diamond shareholders, this deal involves receiving 0.2316 Noble shares and $5.65 in cash for each Diamond share held, which represented a premium of 11.4% over Diamond’s closing price on June 7, 2024. Upon completion of the merger, Diamond shareholders will own approximately 14.5% of the outstanding shares of Noble Corporation.
Noble Corporation strengthens its position in the offshore market
[post_relacionado]Noble will control a fleet of 41 rigs (28 are floating and 13 are self-elevating) and an estimated order backlog of about $6.5 billion.
This acquisition advances our goal of providing innovation and value to a wide range of leading offshore operators worldwide.
said Robert Eifler, Noble Corporation’s president and chief executive officer.
Eifler emphasized that the company’s position will be strengthened by the addition of four seventh-generation seventh-generation drillships a generation drillships and one of the world’s most advanced semi-submersible platforms for harsh environments. and one of the world’s most advanced semi-submersible rigs for harsh environments.
Noble’s board of directors also approved a 25% increase in the quarterly dividend, raising it to $0.50 per share, effective the third quarter of 2024. This merger will result in a leading fleet of highly advanced drillships, including highly advanced vessels, including 14 seventh-generation vessels with dual BOPs in operation, and a globally diversified customer base and multiple rig types.
Their shared commitment to safety, operational excellence and customer service ensures a seamless integration. The combined backlog of $6.5 billion, including Diamond’s $2.1 billion, will significantly increase value per share and platform.
Noble Corporation and Diamond Offshore Drilling consolidate their joint venture
This combination offers Diamond shareholders immediate and long-term growth potential within an expanded platform that can deliver value to customers and shareholders in a more visible and accessible way, as well as benefiting from Noble’s strong dividend program.
said Bernie Wolford, president and chief executive officer of Diamond Offshore Drilling.
Noble expects annual pre-tax savings of $100 million, of which an estimated 75% will materialize within the first year after the deal closes. These savings will significantly increase the company’s free cash flow per share, allowing it to return more capital to shareholders.
The merger, which has been unanimously approved by the Boards of Directors of both companies, is subject to customary closing conditions, including obtaining the necessary regulatory approvals and the approval of Diamond’s shareholders. The merger is expected to be completed in the first quarter of 2025.
This agreement comes in a context where the offshore industry is constantly evolving, with an increasing emphasis on sustainability and operational efficiency. The merger of Noble Corporation and Diamond could set a precedent in the integration of advanced technologies to reduce the environmental impact of drilling operations.
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Source: gcaptain
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