Gulf Oil and Gas accountACCOUNT

Purchase of Remaining Shares in Songa Eclipse Limited

Source: 7/25/2011, Location: Europe

Reference is made to the press releases sent out by Songa Offshore SE on 24 March 2010 and 25 January 2011 regarding its ownership in Songa Eclipse Limited (Songa Eclipse). Songa Eclipse Limited owns a 6th generation Friede & Goldman ExD ultra-deepwater semi-submersible drilling rig under construction at Jurong Shipyard Pte Ltd, Singapore with scheduled delivery in August 2011.

Songa is pleased to announce that it has entered into an agreement with the minority shareholders in Songa Eclipse to acquire the remaining 48.1% stake, following which Songa will have obtained 100% ownership. The transaction is expected to be completed at delivery of the Rig, subject to inter alia Songa securing the necessary take-out financing. The sellers of the shares are sub-funds of Sector Umbrella Trust managed by Sector Omega ASA (35.1%) and Pareto World Wide Offshore AS (13.1%). Under the terms of the agreement, Songa will acquire the shares for USD 65 million as well as a conditional bonus payment to be made within 18 months from delivery of the Rig. The conditional bonus payment will be calculated on the basis of the Rig's fair market value at the time of notice by the Seller less the purchase price already paid by Songa. This new agreement enables Songa to optimize the financing of Songa Eclipse as a 100% owner, and replaces the current agreement between Songa and the Sellers, as described in the press release sent out by Songa on 24 March 2010. Songa is in the process of financing the rig with its existing banking group, and expects to get this in place prior to delivery of the Rig.

Through this transaction, Songa has obtained full ownership of its first modern ultra-deepwater semi-submersible Rig and should be seen as part of the Company's overall strategy to renew its fleet. Songa has been able to secure this position within 16 months from the initial investment, with a gradually increasing ownership. The weighted average total rig cost for Songa before the remaining bonus payment is estimated to be USD 660 million.

Mergers and Acquisitions News in Norway >>

Japan >>  7/17/2019 - Mitsubishi Heavy Industries (MHI) and Primetals Technologies will acquire ABP Induction Systems (ABP), a global manufacturer and servicer of induction...
Australia >>  7/15/2019 - Melbana Energy Limited (Melbana) announces its conditional intention to make a takeover offer (Offer) for 100% of the ordinary shares in Metgasco Limi...

United States >>  7/15/2019 - U.S. independent Callon Petroleum Company will acquire Houston-based Carrizo Oil & Gas, Inc. in an all-stock transaction valued at $3.2 billion, both ...
United States >>  7/12/2019 - Aspen Technology, Inc. (AZPN), a global leader in asset optimization software, has signed an agreement to acquire Mnubo Inc., a Montreal-based provide...

Saudi Arabia >>  7/9/2019 - The Saudi Arabian Industrial Investments Company (Dussur), Saudi Aramco, and Hyundai Heavy Industries (HHI) have signed a joint venture to manufacture...
Brazil >>  7/8/2019 - Petrobras reports that it signed an Agreement with the Administrative Council for Economic Defense (Cade), which consolidates understandings between ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Norway Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 |

More News

Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.