Ensco Proposes Sweeter Deal for Merger with Rowan
Ensco plc is proposing to increase the exchange ratio for its merger deal with Rowan Companies plc, the company announced Monday.
Both companies announced their all-stock merger, valued at $12 billion, on Oct. 8, 2018.
Under the terms of Ensco’s new proposal, Rowan shareholders would receive 2.6 Ensco shares for each Rowan share, a 17.4 percent increase from the earlier exchange ratio of 2.215.
After the transaction closes, Ensco and Rowan shareholders will own about 57 percent and 43 percent, respectively, of the outstanding shares of the combined company. There are no other proposed changes to the original deal.
Ensco’s board of directors has already approved the proposal.
“This enhanced proposal is a reaffirmation of our belief that this combination will generate significant long-term shareholder value and result in the creation of a leading offshore driller with substantial opportunities across water depths, geographies and market conditions… Ensco’s non-executive chairman of the board of directors Paul E. Rowsey III said in a company statement. “One hundred fifty million dollars of anticipated annual synergies resulting from the transaction are expected to create $1 billion of capitalized value for shareholders of the combined company.”
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