Saudi Arabian drilling firm ADES consolidated an agreement to acquire all of the shares of Shelf Drilling, a Dubai-based offshore operator, for approximately US$380 million.
Strategic movement with Shelf Drilling
With this transaction, ADES seeks to expand its presence in the global offshore drilling market. offshore drillingby adding 38 jack-up rigs to its fleet. The transaction was structured as a cash merger, and will be financed through a credit facility available to ADES, demonstrating the company’s financial strength.
[post_relacionado]Upon completion of the merger, which is expected in the fourth quarter of 2025, the shares of Shelf Drilling shares will cease to be listed on the Oslo Stock Exchange. Shareholders will receive a cash consideration of approximately US$1.36 per share, representing a 62% premium to the closing price prior to the offer.
Shelf Drilling’s board of directors unanimously recommended the transaction as fair in terms of value for its shareholders. In addition, Castle Harlan, Perestroika and company executives, who together own a 15% interest, have made an irrevocable commitment of support.
The new entity will have a combined fleet of 83 jack-up rigs with an order backlog valued at US$9.45 billion. In addition, the integration will enable projected operating synergies of US$40 million to US$50 million annually, strengthening the overall efficiency of the organization.
For ADES, this acquisition enhances its position in the Middle East and North Africa, and at the same time, allows it to enter strategic regions with high development potential in the offshore market. According to Mohamed Farouk, CEO of ADES, the deal “delivers sustained shareholder value and enhances our global footprint”.
Source and photo: Shelf Drilling / PDF