NADL - North Atlantic Drilling announces acquisition of land drilling rigs in Russia
22 August 2014 - 05:54PM
North Atlantic Drilling Ltd. ("NADL" or the "Company") is pleased
to announce that an agreement has been signed whereby NADL will
purchase a significant portion of Rosneft's land drilling fleet in
Russia. Approximately 150 rigs will be acquired along with an award
of new 5 year contracts with Rosneft for these units.
Following the preliminary Investment and Cooperation
announcement in May and the completion of the binding offshore
contracts in July, NADL today has agreed to acquire a significant
portion of Rosneft's land drilling fleet. Rosneft will receive as
consideration an approximate 30% stake in NADL by receiving primary
shares at the price agreed upon in May of US$9.25 per share, with
the balance being paid to NADL in cash. Following the transaction
Seadrill Limited will continue to own more than 50% of NADL.
The transaction is expected to close during the fourth quarter
of this year. According to the agreement, any break rights expire
after 77 days. Upon closing Rosneft will be entitled to appoint two
of seven Board seats on NADL's Board of Directors.
This binding agreement is consistent with the provisions of the
Investment and Cooperation Agreement between Seadrill, NADL and
Rosneft announced on May 24, 2014.
Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a
comment, "We are very pleased with the execution of this important
transaction and welcome Rosneft as an equity partner and to our
Board of Directors." NADL is an offshore harsh environment drilling
company with focus on the North Atlantic basin. The company has
nine drilling units in the fleet, including five semi-submersibles,
a drillship, and three jack-up rigs. Seadrill Limited currently
owns 70% of the outstanding shares and the company is listed on the
NYSE and Norwegian OTC with a market capitalization of
approximately US$2.4 billion. This information is subject of the
disclosure requirements pursuant to section 5-12 of the Norwegian
Securities Trading Act.
HUG#1850487