General – Shares
Transocean and Valaris today announced the signing of a definitive agreement to combine the two companies under which Transocean will acquire Valaris in an all stock transaction valued at approximately $5.8 billion.
The shareholding percentages of the combined company will be approximately 53% for Transocean and 47% for Valaris. The enterprise value of the pro forma company is approximately $17 billion.
“This transaction creates a very attractive investment in the offshore drilling industry, differentiated by the best fleet, proven people, leading technologies, and unequalled customer service,” said Keelan Adamson, Transocean President and Chief Executive Officer.
“The powerful combination is well-timed to capitalize on an emerging, multi-year offshore drilling upcycle. Investors and our global customers will benefit from our expanded fleet of best-in-class, high-specification rigs. We have identified more than $200 million in cost synergies that will complement our ongoing efforts to safely lower costs. The strong pro forma cash flow enables us to accelerate debt reduction, resulting in an expected leverage ratio of about 1.5x within 24 months of the transaction closing.”
Valaris Chief Executive Officer Anton Dibowitz said: “By combining with Transocean, we will create a new industry leader for the benefit of our shareholders, customers, and employees. We look forward to complementing Transocean’s high-specification deepwater assets with our own, while returning world-class jackup expertise to Transocean’s business, creating a combined company that is capable of operating any rig at any water depth in any offshore environment around the world.”
The transaction brings together highly complementary, premium offshore assets. On a pro forma basis, the company will own 73 rigs able to serve customers in deepwater, harsh environment, and shallow water basins around the world.
