Ensco increases offer for Rowan Companies

Ensco increases offer for Rowan Companies

Offshore driller Ensco has increased its offer to Rowan Companies shareholders as it looks to finalise a $12bn agreement to combine the two companies in an all-stock transaction.

Ensco has increased the exchange ratio for the combination to 2,600 Ensco shares for every Rowan share, up 17.4% on the initial deal which had been approved by the Rowan board. The new deal gives Ensco shareholders a 57% stake in the enlarged company, with Rowan shareholders taking 43%.

Paul E. Rowsey III, non-executive chairman of Ensco, commented:: “This enhanced proposal is a reaffirmation of our belief that this combination will generate significant long-term shareholder value and result in the creation of a leading offshore driller with substantial opportunities across water depths, geographies and market conditions. The combined company will boast some of the industry’s highest-specification assets, unparalleled geographic coverage, a diverse customer base and significant future revenue growth opportunities. Further, $150 million of anticipated annual synergies resulting from the transaction are expected to create $1 billion of capitalized value for shareholders of the combined company. We look forward to quickly executing an amendment to the definitive agreement and to consummating this transaction and delivering on the significant opportunities of the combined company.”

Ensco says the new proposal is final and represents the maximum exchange ratio that Ensco is prepared to offer.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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