Drilling contractor Transocean has been given the green light for its takeover bid of Songa Offshore in a deal worth $3.4billion.
Songa confirmed this morning that the due diligence review has been completed without any implications to any terms of the transaction.
The appropriate documents have now been filed with the US Securities and Exchange Commission (SEC).
Some adjustments to financial statements were required to be made in order to bring accounts in accordance with US General Accepted Audit Standards (US GAAS).
The financial books of Songa Offshore will be aligned with the ruling of the Oslo City Court and with the company’s tax books.
The proposed combined company will have a fleet of 53 rigs, comprised of ultra-deepwater drillships, harsh environment semis and deep- and mid-water semisubmersibles, combined with 9000 employees.
The offer will be made for an offer price of NOK 47.50 per Songa Offshore share to be settled in shares, convertible bonds and cash. The consideration implies an equity value of Songa Offshore on a fully diluted basis of approximately NOK 9.1 billion ($1.2billion) , and an enterprise value of approximately NOK 26 billion ($3.4billion).
The firms expect to save $40million annual through cost synergies.
Songa’s board has recommended that shareholders accept the offer.
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