as mentioned in
Shares of Switzerland-based Transocean fell Monday after international drilling contractor Borr Drilling announced it will acquire 15 of Transocean’s rigs in a deal valued at $1.35 billion.
The estimated $1.35 billion price tag includes any remaining contract backlogs and yard installments, or any fees that would be required of the 5 rigs still under construction, Borr Drilling said.
“The potential purchase price … suggests slight downside to [Transocean’s] stock price,” BMO Capital Markets analyst Dan Boyd told CNBC in an email.
The 15 oil rigs being acquired include Transocean’s entire jackup fleet, which is comprised of 10 of Transocean’s own rigs and five new rigs under construction, the press release said.
Transocean still owes $1.1 billion in new-build payments on its rigs, according to BMO, and Boyd said he doubts Borr’s acquisition price of the rigs includes the lingering liabilities, “as that would imply Borr paying full replacement cost.”
As it stated in
(Update) Transocean Agrees To Sell Its Jack-Up Fleet To Borr Drilling For $1.35 Billion – Transocean Ltd. (NYSE:RIG)
On march 20, 2017, Borr Drilling announced the purchase of Transocean’s jackup fleet for $1.35 billion.
THE TRANSACTION CONSISTS OF TRANSOCEAN’S ENTIRE JACK-UP FLEET, COMPRISING 10 RIGS IN TRANSOCEAN’S FLEET AND 5 NEW-BUILDS UNDER CONSTRUCTION AT KEPPEL FELS LIMITED.
The deal is a real positive for Transocean, in my opinion, and quite a puzzling expensive gamble for Borr Drilling.
Borr Drilling issued a press release on March 20, 2017, about the acquisition.
1 – Let’s look at the most recent Transocean fleet status released on February 9, 2017.
As it stated in
The transaction is expected to be completed by the end of May this year, Borr Drilling noted.
Newly created Norwegian drilling contractor Borr Drilling said on Monday that it had signed a deal to acquire the entire fleet of 15 high-specification jack-up rigs of Transocean for around $1.35 billion.
Borr Drilling – set up last year by managers who had left Seadrill and aiming to acquire low-price drilling assets – will be buying Transocean’s 10 rigs in its fleet and 5 new-builds under construction at Keppel FELS Limited.
They are 30 ultra-deepwater floaters, 7 harsh-environment floaters, 3 deepwater floaters, 6 midwater floaters and 10 high-specification jack-ups.
The Norwegian company will finance part of the deal via $800 million worth of new equity it is raising, Borr Drilling said in a separate press release today.
collected by :Jack Alex