Seawell to buy Allis-Chalmers Energy Inc in an $890 million deal
13 Aug 2010
Seawell Ltd, the Aberdeen, UK-based offshore drilling and well service contractor, Seawell Ltd, headquartered in Aberdeen, yesterday said that it plans to acquire Allis-Chalmers Energy Inc in a transaction valued at approximately $890 million including debt.
The combined company will operate its drilling and well services in over 30 key oil and gas regions globally including in the US, Gulf of Mexico, Brazil, Argentina, North Sea, Middle East, Africa and Southeast Asia / Pacific
Thr revenues of the combined entity is estimated at $1.3 billion.
Shareholders Allis-Chalmers could opt to receive $4.25 in cash or 1.15 Seawell shares for each of their shares, subject to proration. The transaction is at a 77-per cent premium to Allis-Chalmers' closing price yesterday.
The transaction values Allis-Chalmers at $890 million including assumed debt with about $308 million being the estimated value of Allis-Chalmers outstanding shares and about $580 million debt.
Bermuda-incorporated Seawell is an offshore drilling and well service contractor that provides services in platform drilling, well intervention and engineering.
