UAE-based drilling rig operator ADES International has announced that it has agreed to be taken over by a consortium that includes Saudi Arabia’s Public Investment Fund (PIF) in a deal worth $516m.
The transaction will see Innovative Energy Holding formed, a new company jointly owned by the PIF, Zamil Investments and ADES Investments.
ADES Investments currently holds 64% of ADES International Holding, while Zamil holds a 5% stake, and both companies will transfer their holdings to Innovative Energy after an agreement is finalised.
Following the completion of the deal, ADES International’s shares will be delisted from the London Stock Exchange.
Innovative Energy believes that as a private company ADES International will benefit from a longer term approach to strategy and decision making and that ADES International will have greater flexibility to pursue strategic opportunities.
ADES, which grew out of Egypt, listed in London in 2017. The company currently has a fleet of 36 onshore drilling rigs, 13 offshore jackup rigs, a jackup barge and a mobile offshore production unit.