On January 18, 2018, Transocean announced that it concluded its shareholder meeting. Shareholders approved the acquisition of Songa Offshore.
Songa shareholders’ had an option to accept the offer until January 23, 2018. Shareholders who accept the offer are expected to receive settlement on or about January 30, 2018.
Transocean’s president and CEO, Jeremy Thigpen, said “with this acquisition, we add to our industry-leading backlog, providing more visibility to future earnings and cash flows. As importantly, we enhance our industry-leading harsh environment fleet in the midst of a strengthening global harsh environment market.”
Combined company’s fleet and backlog
The combined company will have a combined fleet of 51 rigs consisting of 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters, and seven midwater floaters. In addition to this, Transocean has four ultra-deepwater rigs under construction. In the above chart, you can see that among offshore drillers (IYE) Seadrill (SDRL), Noble Corporation (NE), Ensco (ESV), and Diamond Offshore (DO), Transocean has the highest number of floaters.
Transocean already had a backlog of $10.2 billion. Now, Transocean will add a backlog of $4.1 billion. The combined company will have a backlog of $14.3 billion.
Due to the acquisition, Transocean will have cost and operational synergies of ~$40 million. The company also thinks that the transaction will be accretive on EBITDA, operational cash flow, and net debt-to-EBITDA.