Famatown Finance Snaps Up Valaris Stake

Famatown Finance Snaps Up Valaris Stake
The interest was obtained through open market transactions.

Valaris Limited (NYSE: VAL) has announced that Famatown Finance Limited, a company indirectly controlled by trusts settled by John Fredriksen and a member of The Seatankers Group, has accumulated approximately five percent of the common shares of Valaris.

The interest was obtained through open market transactions, Valaris highlighted. Valaris also revealed that it has entered into a support agreement with Famatown, granting board observer rights to a Famatown designee upon the satisfaction of certain conditions specified in the support agreement. The company said the support agreement provides Famatown with the potential to designate a member of the Valaris board, should Famatown increase its ownership of Valaris shares in an amount that the board deems sufficient.

“Valaris welcomes the interest and investment from The Seatankers Group, who have extensive offshore drilling knowledge and experience,” Anton Dibowitz, Valaris’ recently appointed president and chief executive officer, said in a company statement.

“We appreciate the confidence expressed in the Valaris management team and board of directors, and the recognition of Valaris’ compelling value proposition. We look forward to a collaborative and long-term relationship,” Dibowitz added in the statement.

Valaris noted that the Seatankers Group has expressed its determination to be a long-term shareholder while working alongside the company as a resource and partner to continue driving long-term value for Valaris shareholders.

According to a Famatown Finance Limited statement published online, the Seatankers Group believes the offshore drilling industry is in the early stages of an exciting recovery, driven by industry consolidation and a growing recognition of a need for sustained drilling activity to facilitate an orderly energy transition over time. The Seatankers Group also believes that Valaris will be an industry leader in the years to come and that it represents by far the most compelling value proposition for investors in what is an increasingly attractive industry, the statement added.

Fredriksen’s real time net worth comes in at $10.7 billion, according to a Forbes list. He stepped down as Seadrill Limited chairman in November 2019 and was succeeded by Glen Ole Rødland.

To contact the author, email andreas.exarheas@rigzone.com

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