TRANSOCEAN ACQUIRES SONGA OFFSHORE
Transocean has reached an agreement with Songa Offshore whereby it will, subject to certain conditions, make a Voluntary Exchange Offer to acquire 100 percent of the issued and outstanding shares of Songa Offshore. The consideration implies an equity value of Songa Offshore on a fully diluted basis of approximately NOK 9.1 billion (USD $1.2 billion), and an enterprise value of approximately NOK 26.4 billion (USD $3.4 billion).
Songa Offshore is an International Midwater Drilling Contractor with a strong presence in the harsh environment North Atlantic basin. The company operate a fleet of 7 rigs. The fleet consists of 3 aging mid-water semi-submersibles, Songa Trym, Songa Delta, Songa Dee built in 1976, 1981, 1984 respectively, and 4 CAT D state-of-the-art harsh environment semi-submersibles Songa Endurance, Songa Enabler, Songa Encourage, Songa Equinox.
The transaction strengthens Transocean’s industry-leading position with the addition of Songa Offshore’s four Cat-D rigs on long-term contracts with Statoil in Norway. The combined company will operate a fleet of 51 mobile offshore drilling units with backlog of USD $14.3 billion consisting of 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters and seven midwater floaters. Additionally, Transocean has four ultra-deepwater drillships under construction, including two contracted with Shell for ten years each. Consistent with Transocean’s strategy of recycling older less capable rigs, Transocean anticipates re-ranking the combined fleet, which may result in additional rigs being recycled. (Source: Transocean, Songa Offshore – Image: Songa Endurance / Songa Offshore)