Ensco and Rowan are companies that have strong brand recognition in both the jack-up and floater sectors. What makes a company like Rowan particularly interesting for Ensco is the opportunity to further high-grade their growing portfolio with premium assets and expand their footprint in key markets such as Middle East, Latin America, Europe and US Gulf of Mexico,
...explained Ms Cook.
UK-based Ensco plc and US-based Rowan Companies plc jointly announced on 8 October that they have entered into a definitive transaction agreement under which Rowan will combine with Ensco in an all-stock transaction. The definitive transaction agreement was unanimously approved by each company’s board of directors.
Under the terms of the transaction agreement, Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own approximately 60.5% and 39.5%, respectively, of the outstanding shares of the combined entity.
The transaction will create a major offshore driller by fleet size and geographic presence, "with 82 rigs spanning six continents and collectively serving more than 35 customers, including the largest national oil companies, international majors and independent exploration and production companies". Namely, the combined company’s rig fleet will include 28 floaters and 54 jack-ups.
Once combined, Ensco-Rowan will have the second-largest floating rig fleet, with nearly 90% consisting of generation VI and VII assets. These are the rigs that are most desired by operators globally, as they offer the best capabilities and flexibilities for various deepwater drilling programmes around the world. The combined company will also become the largest player in the jack-up sector. Nearly 40% of the combined portfolio will consist of ultra-harsh and modern harsh-environment assets. This is an excellent value for the shareholders of both companies,
...Ms. Cook concluded.