Offshore driller Transocean said it will be acquiring all outstanding common units of master limited partnership Transocean Partners that it doesn’t already own in a share-for-unit merger transaction.
The deal, which will be completed by the end of 2016, will see Transocean Partners common unit holders receive 1.1427 Transocean shares for each Transocean Partners common unit. Transocean expects to issue approximately 22.7m shares.
Upon completion of the transaction, Transocean Partners will be fully owned by Transocean giving it full ownership of drillships Discoverer Inspiration and Discoverer Clear Leader as well as semi-submersible rig Development Driller III.
“We are excited about this merger, as it provides significant and immediate benefits to Transocean in the form of simplified administration and governance, tangible cost savings and improved liquidity,” said Jeremy Thigpen, President and chief executive officer of Transocean.
“Transocean Partners common unitholders will benefit from a premium to the current unit price and receive shares in an entity with significant financial flexibility, a demonstrated access to capital and meaningfully improved market liquidity of its shares,” added Kathleen McAllister, chief executive officer and chief financial officer of Transocean Partners.
Transocean Partners’ common units will cease to be traded on the New York Stock Exchange.
