Transocean to buy Ocean Rig in $2.7B cash and stock deal
Sep. 4, 2018 7:00 AM ET|About:
Ocean Rig UDW Inc. (ORIG)|By:
Carl Surran, SA News Editor
Transocean (NYSE:
RIG)
agrees to acquire Ocean Rig UDW (NASDAQ:
ORIG) in a cash-and-stock deal valued at $2.7B, including debt, that RIG says will enhance its position as the leader in ultra-deepwater and harsh environment drilling.
RIG is offering 1.6128 newly issued shares plus $12.75 in cash for each ORIG common share, for a total implied value of $32.28/share, representing a 19.2% premium to Friday’s closing price; RIG and ORIG shareholders would own ~79% and 21%, respectively, of the combined company.
RIG says the acquisition will result in a combined fleet of 57 floaters, with 17 of the top 50 and 31 of the top 100 ultra-deepwater drillships in the industry; its backlog would increase by $743M for a combined total of $12.5B.