Noble Corporation (NYSE: NE) and The Drilling Company of 1972 (Nasdaq Copenhagen: DRLCO), also known as Maersk Drilling, announced today that they have entered into a definitive business combination agreement to combine. The merger is expected to be primarily an all-stock transaction.
Upon the completion of the transaction, shareholders of both companies will each approximately 50% of the outstanding shares of the combined company. The resulting merger will still be named Noble Corporation and will still trade its shares in both the New York Stock Exchange and Nasdaq Copenhagen.
“The combination of Noble and Maersk Drilling will create a leading offshore driller with global scale, a strong balance sheet and significant free cash flow generation potential,” said Noble Corporation Chairperson of the Board Charles M. Sledge.
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As of September 30, 2021, the two companies have combined pro-forma revenue of approximately US$2.1 billion, cash balance of US$900 million, and net debt of US$600 million. The merger is also expected to have a free cash flow potential of up to US$375 million in 2023.
Sledge is set to be the chairman of the resulting merger’s board, which will comprise three directors designated by each company. Noble Corporation CEO Robert W. Eifler will also sit as the chief officer of the combined company.
Noble Corporation last traded at US$28.57 on the NYSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
