Shareholders of both Ensco and Rowan Companies have approved a $12bn all-stock transaction that will see the two companies combine.
Rowan shareholders will receive 2.750 Ensco shares for each Rowan share they own, giving Ensco shareholders a stake of around 55% of the enlarged company and Rowan shareholders around 45%.
Carl Trowell, president and CEO of Ensco, commented: “We are gratified that Ensco shareholders recognize the strategic and financial merits of our pending combination with Rowan. The combined company will be an industry leader in offshore drilling across all water depths that is well positioned to better serve our customers. We are eager to close the transaction and begin delivering on the significant opportunities of the combined company.”
Tom Burke, president and CEO of Rowan Companies, said: “We are pleased that Rowan shareholders overwhelmingly support the pending combination with Ensco and have voted to approve the transaction. Combining our organizations will enable Rowan and Enscoshareholders to participate in the substantial value creation opportunities of a larger, more technologically-advanced and diverse offshore drilling company. We wish to thank Rowan shareholders for their continued support and look forward to completing the transaction with Ensco.”
The transaction is expected to be finalised before the end of June, creating an offshore drilling giant with a fleet of 82 rigs across six continents serving more than 35 customers.