Ensco and Rowan Amend Merger Agreement

Ensco plc and Rowan Companies plc have made changes to their transaction agreement the companies originally entered into on Oct. 7.

The amendment to the all-stock merger transaction says that Rowan shareholders will receive 2.75 Ensco shares for each Rowan share after closing. Ensco and Rowan shareholders would then own 55 percent and 45 percent, respectively, of the outstanding shares for the combined company.

On Jan. 14, Ensco sweetened the proposed deal, offering Rowan shareholders 2.6 Ensco shares for each Rowan share. The amendment gives Rowan shareholders even more ownership.

The amendment has been approved by both company’s board of directors. All other terms and conditions of the original transaction agreement remain the same.

“By reaching an amended agreement, Ensco and Rowan shareholders will benefit from anticipated expense synergies that are expected to create approximately $1.1 billion of capitalized value … a larger, more technologically-advanced and diverse offshore driller will provide shareholders of both companies with even greater upside as the industry recovery unfolds,” Ensco CEO Carl Trowell said in a company statement. “In addition to a broad fleet of high-specification floaters and jackups, the combined company will have a diverse customer base that includes most of the largest holders of offshore reserves and the broadest geographic presence of any offshore driller.”