Oil rig contractor Ensco to acquire 19-per cent stake in Scorpion for $546 million
28 May 2010
UK oil and gas drilling contractor Ensco International has launched a partial tender offer to acquire a 19-per cent stake in Scorpion Offshore for Norwegian kroner (NOK0 39.50 per share valuing the company at $546 million.
Ensco's offer trumped last month's bid by Norwegian shipping tycoon John Fredriksen-controlled Seadrill Ltd, which offered to acquire the 60-per cent it does not already own of Scorpion for 36 crowns per share.
London-based Ensco plc is one of the leading providers of offshore contract drilling services to the international oil and gas industry and its American Depositary Shares are traded on the New York Stock Exchange.
Ensco's offshore rig fleet includes 39 jackup rigs, four ultra-deepwater semisubmersible rigs and one barge rig. It also has four ultra-deepwater semisubmersible rigs under construction. Its operations are concentrated in Asia, Europe and Africa and North and South America.
Ensco said that if its partial tender is successful, it plans to acquire the whole of Scorpion and if not successful, the company would not take further steps to acquire Scorpion under the proposal.
Chairman, president and CEO of Ensco, Dan Rabun said, "Scorpion Offshore is a highly-respected offshore drilling contractor with an excellent reputation for safety and operational excellence. The proposed transaction fits our strategy of high-grading our fleet with newer rigs that will benefit from stronger utilization and higher day rates."
