Noble to divest five jackup rigs for $375m
Sopuruchi Onwuka
Multinational oilfield service provider, Noble Energy, is working out details of a merger deal that entails divestment of five of its jack up rigs to a new special entity.
Noble said it has signed an asset purchase agreement to sell five jackup rigs to a unit of Shelf Drilling Limited.
In an update on the ongoing merger control process for the business combination announced last November, Noble announced signing of an asset purchase agreement to sell Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert and Noble Lloyd Noble for $375 million.
The five rigs altogether called the “Remedy Rigs” were sold to a newly formed subsidiary of Shelf Drilling Limited, and the transaction is subject to approval of the U.K. Competition and Markets Authority (CMA).
The transaction, Noble stated, is intended to address the potential concerns identified by the CMA in the Phase 1 review of the business combination.
“On May 9, the CMA published its decision that there are reasonable grounds for believing that a sale to a suitable purchaser of the Remedy Rigs, together with sufficient supporting infrastructure, might be accepted by the CMA to address its concerns related to lessening of competition created by the business combination.
“The duration and outcome of the CMA review process remains uncertain.
“If Shelf Drilling, the Remedy Rig sale agreement and the remedy proposal are accepted by the CMA, closing of the business combination is expected to occur near the end third-quarter 2022.
“In connection with the merger, the parties expect Noble to launch the planned exchange offer for shares of Maersk Drilling in August 2022.
“In addition to the CMA approval, completion of the merger remains subject to acceptance by holders of at least 80% of Maersk Drilling shares, listing of Noble shares on the NYSE and Nasdaq Copenhagen, and other customary conditions.”
