Shandong Offshore International has agreed with John Frederiksen’s Northern Offshore (NOF) to acquire NOF at NOK7.59 (USD0.97) per share in cash.
The deal values NOF’s issued share capital at about NOK1.3 billion and the acquisition will be financed from the purchaser’s existing cash resources, NOF said on 29 June.
The acquisition is expected to take effect during the first half of August 2015.
Yu Bing, director of Shandong Offshore, and Dr Sun Yuanhui, chairman of its subsidiary, Blue Ocean Drilling, said, “The acquisition of Northern Offshore is a positive step in our vision of building a high-performing offshore drilling organisation to meet the current and future needs of the global exploration and production sector.
“By retaining the NOF leadership team, when combined with Blue Ocean Drilling’s leadership, we will have assembled a highly skilled and experienced team to direct and execute our strategies as the new Northern Offshore going forward. Enhancement of the new NOF fleet is already under way with the combined NOF and Blue Ocean Drilling newbuildings of six deepwater jackups due to be delivered in 2016-18.”
Gary Casswell, president and CEO of NOF, said, “Combining the four jackups of Blue Ocean Drilling with Northern Offshore’s two jackups with deliveries in 2016 through early 2018, we will realise organisational synergies and have the opportunity to build additional mass in our current operations in the North Sea and Asia Pacific, as well as position us to pursue new clients in new areas.”