Abbot Shareholders Approve Songa Acquisition at AGM
Abbot announces that all resolutions proposed at the AGM, held today, were duly passed.
Abbot further announces that the resolutions in relation to the acquisition of Songa Drilling proposed at the EGM, held immediately following the conclusion of the AGM, were also passed.
Commenting, Alasdair Locke, Executive Chairman of Abbot, said: "I am delighted that Abbot Shareholders have given their approval to the acquisition of Songa Drilling. Subject only to the receipt of the requisite level of acceptances of 75 per cent from Songa shareholders, we hope to complete the acquisition on 8 June 2006. I am pleased to announce that we have already received acceptances from Songa shareholders representing 62.3% of Songa's issued share capital.
The acquisition of Songa Drilling's three jackups will allow us to build upon the experience we have gained from managing similar rigs in the Middle East. There is demand from both our existing and new clients for such rigs, and we continue to see increases in day rates for such units in the market place. I am confident that we shall achieve substantial additional cash-flows in the short-term and we shall achieve a significant enhancement in earnings in the first full financial year following completion of the Acquisition.
Overall, the Group continues to perform to our expectations, which reinforces my confidence that we shall deliver above trend levels of performance in each of the next several years."
Definitions used in the Prospectus sent to Shareholders dated May 8, 2006 have the same meanings when used in this announcement, unless the context requires otherwise.
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