Atlantica Tender Drilling & Energy Drilling Seeks Merger to Catalyst Growth

Source: www.gulfoilandgas.com 4/4/2019, Location: North America

Atlantica Tender Drilling Ltd. (“Atlantica”) and Energy Drilling Pte. Ltd. (“Energy Drilling”) have signed a  Letter  Of  Intent  to  merge  the  two  companies.  The  contemplated  transaction  will  create  a  stronger  company with improved capabilities and geographical presence, a starting point for further growth and  consolidation in the drilling industry. 

Atlantica is a leading owner and operator of semi?submersible tender drilling rigs operating in the Atlantic  Ocean. Energy Drilling is a leading owner and operator of barge  tender drilling  rigs operating offshore  South?East Asia and has a newbuild semi?submersible tender drilling rig ready for delivery. 

The combined company will be the second largest tender drilling contractor, with five rigs representing  17% of the tender drilling market. The fleet will be the most modern among competitors, with an average  age of 5 years. Operations are backed by solid backlog against Petrobras and Total and a  strong  track  record operating for Thai national oil company PTTEP. For the year ended 2018, the combined company  had revenues of USD 211 million and an EBITDA of USD 114 million. 

“This merger represents the starting point for an attractive growth strategy targeting to consolidate and  expand in the drilling industry. Atlantica and Energy Drilling has the right assets, backlog and balance sheet  to be a forward leaning M&A partner in the industry”, says Kerry Kunz, CEO of Atlantica. 

“The two companies have performed drilling operations in multiple geographical locations for top clients  such as Petrobras, Total and PTTEP. Our goal is to grow our combined company to provide our clients with  cost effective, productive and safe drilling operations”, says Marcus Chew, CEO of Energy Drilling.

An implementation committee with representatives  from both companies will commence  the detailed  planning and structuring of the contemplated transaction as well as conclude management structure and  operational presence going forward.  

When  all  conditions  in  the  Letter  Of  Intent  are  met,  including refinancing  of  existing  credit  facilities,  satisfactory due diligence and shareholder approvals, the transaction is expected to be completed early  third quarter 2019.  

The contemplated transaction is unanimously supported and recommended by the board of directors of  the  two  companies.  The  contemplated  transaction  has  also  received  support  from  the  majority  of  shareholders in Atlantica and Energy Drilling.  


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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  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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