Seadrill to acquire Aquadrill to create major offshore drilling company
Seadrill, a Bermuda-incorporated offshore drilling contractor, will acquire offshore rig owner Aquadrill in an all-stock transaction valued at an implied equity value of around $958 million.
Post-closing, Seadrill stakeholders will own 62% and Aquadrill unitholders will hold 38% of the outstanding common shares in the combined entity.
Aquadrill is a UK-based limited liability company that owns eight offshore drilling units — four ultra-deepwater drillships, one ultra-deepwater harsh environment semi-submersible, and three tender assist drilling units.
The combined entity will remain named Seadrill and will continue to be domiciled in Hamilton, Bermuda.
The transaction is anticipated to form a major offshore driller with strong credit and liquidity profile as well as technologically advanced fleet that can be deployed across critical basins in the Golden Triangle.
![Seadrill to acquire Aquadrill to create major offshore drilling company](https://business-news-today.com/wp-content/uploads/2022/12/quenguela-e1671859841121.jpg)
Seadrill to acquire Aquadrill to create major offshore drilling company. Photo courtesy of Seadrill Limited.
The offshore drilling company with a combined backlog of $2.8 billion will have 12 floaters, including seven 7th generation drillships, three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs.
In addition, the enlarged Seadrill will manage seven rigs under a variety of strategic collaborations.
Simon Johnson — Seadrill President and CEO said: “Seadrill and Aquadrill have a long and rich strategic and operational management history.
“Our shared heritage will promote efficient integration of the two companies. I look forward to welcoming the Aquadrill fleet back into the Seadrill family.”
As of 30 November 2022, Seadrill and Aquadrill had a combined cash balance of around $628 million, with restricted cash of about $133 million, and a combined debt balance of almost $521 million.
The company with a modern and high specification fleet and a streamlined cost structure is projected to generate synergies of no less than $70 million annually.
Steven Newman — Aquadrill CEO said: “We believe this combination will create the most value for our shareholders and will create an excellent platform for high quality service delivery to our customers.”
Aquadrill will be a wholly-owned subsidiary of Seadrill upon the completion of the transaction.
The transaction is expected to close in mid-2023, subject to regulatory approvals and other customary closing conditions.