Nabors Changes Corporate Structure
Nabors Industries Inc. announced that its Board of Directors has unanimously approved a plan to reorganize the Company and effectively change its place of incorporation from Delaware to Bermuda. Under the plan, Nabors Industries Ltd., a newly-formed Bermuda entity, will become the parent holding company of Nabors Industries, Inc. The reorganization is subject to the approval of the holders of a majority of Nabors' outstanding shares.
Gene Isenberg, Nabors' Chairman and Chief Executive Officer commented on the plan of reorganization: "International operations are an increasingly important part of our business. In the future, we believe that the international marketplace will account for a greater percentage of our total revenues and demand for our services. Expansion of our international activities to meet and capitalize on this demand is an important part of our business strategy. The plan of reorganization should allow Nabors to compete more effectively worldwide because it should result in greater operational flexibility, greater access to international capital markets, increased competitiveness regarding international acquisition opportunities and improve our global tax position and cash management. We expect that each of these benefits will generate increased value and returns for our stockholders."
"We anticipate the reorganization will be complete by the end of the first quarter of 2002 and should have no material impact on our employees, suppliers and customers worldwide."
The plan approved by the Board provides that, upon completion of the reorganization, each share of Nabors Industries, Inc. common stock will automatically convert into the right to receive one common share of Nabors Industries Ltd. The new shares will have substantially the same attributes as a share of Nabors Industries, Inc. common stock, with material differences to be described in more detail in the final proxy statement/prospectus.