China Oilfield to buy Awilco
Posted: 7 July 2008
China Oilfield Services Limited reported today that it has reached an agreement with Awilco Offshore ASA to launch a recommended voluntary cash tender offer for 100 per cent of the shares of AWO.
A cash consideration of NOK 85 will be offered per share, which implies a total consideration for all shares of approximately NOK 12.7 billion (approximately US$2.5 billion).
The offer represents a premium of 18.7 per cent over the closing price of AWO shares on 4 July 2008 and a premium of 42.4 per cent over the closing price on 29 May 2008, the last day prior to AWO confirming a third party had expressed an interest in acquiring the company.
AWO’s Board of Directors has unanimously decided to recommend the offer. In addition, Awilco AS and Aweco Holding AS, representing in aggregate 40.11 per cent of the outstanding shares in AWO, have undertaken to accept the offer with respect to their shareholdings in AWO.
The offer will be made by COSL Norwegian AS, a Norwegian limited liability company 100 per cent owned by COSL.
The acquisition will be financed by way of internal resources of COSL and committed external financing from banks.
The combination of COSL and AWO would create the world’s 8th largest rig fleet, consisting of 34 operated rigs (including rigs under construction) with operation and growth opportunities in most major international markets.
AWO’s modern high-specification rigs and cutting-edge technology for offshore drilling is a good strategic fit for COSL.
Posted by Richard Price, Editor, EnergyME.com
Information supplied by companies or PR agencies who are responsible for content.
Send press releases to richard@energyme.com |
