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Seadrill (SDRL) increases its stake in struggling rival Sevan Drilling (SDRNF.OB) to 50.1% and...

Seadrill (SDRL) increases its stake in struggling rival Sevan Drilling (SDRNF.OB) to 50.1% and will make a mandatory offer for the rest of the company. SDRL is reacting to Sevan's recently revealed financing plan to issue $500M in senior secured bonds and finalize a $1.45B corporate bank facility to refinance outstanding debt, which SDRL calls "value destructive for shareholders."
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Comments (12)
  • wigit5
    , contributor
    Comments (4120) | Send Message
     
    hmm wonder what this does to $SDRL if they end up acquiring the whole company...
    27 Jun 2013, 08:44 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (819) | Send Message
     
    Seadrill Brazil IPO back on the table?
    27 Jun 2013, 08:50 AM Reply Like
  • NM1H
    , contributor
    Comments (2) | Send Message
     
    SDRL owes the shareholders a compelling explanation of the benefits of this acquisition. In my 40+ years of business and investing experience, I can tell you that acquiring a troubled company can have all the consequences of eating road kill.
    27 Jun 2013, 09:21 AM Reply Like
  • Energysystems
    , contributor
    Comments (1137) | Send Message
     
    $SDRL increased it stake in Sevan by nearly 20%(from 30.4% to 50.1%) with 75.76M. I think JF believes the assets are worth more than that. The two new builds that will be operational in 4Q13 and 2Q14 are 526M a piece. 20% up front has already been paid on these rigs, with 80% due upon completion.
    27 Jun 2013, 09:39 AM Reply Like
  • Ilioula
    , contributor
    Comments (36) | Send Message
     
    No one buys assets expecting to lose money do they.
    27 Jun 2013, 10:35 AM Reply Like
  • AnglicoTrader
    , contributor
    Comments (127) | Send Message
     
    I think the increase in the share price demonstrates the market's impression of JF's move. I am willing to ride on his to date sound judgment until it demonstratively proves otherwise.
    27 Jun 2013, 10:47 AM Reply Like
  • Stevlg
    , contributor
    Comments (697) | Send Message
     
    Doubters alert:
    I am tempted to believe that John Fredriksen is smarter than
    the rest of us......
    27 Jun 2013, 10:59 AM Reply Like
  • FlaYankee
    , contributor
    Comments (123) | Send Message
     
    John Frederickson is the man on the scene so I trust his decision making process. Looks like Sevan Drilling can't get out of its own way so before they do anymore damage it looks like JF will take over and try to right this ship. He is an aggressive maverick and one of the richest men on the planet so I will trust his judgement to correct and do what needs to be done. It seems that Sevan Drilling needs a severe management shakeup and what better change then to have a very shareholder friendly man in charge like JF.
    27 Jun 2013, 12:06 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Sevan Drilling needs lots of work and time to correct inadequacies. While I tend to like nearly everything that Fredrikson does, this move is a bit odd, as Seadrill will be more leveraged. It may take a while for the transition to be completed, so any impact may not really show up for a few quarters. The next earning report and conference call will be interesting. The e-mail stating Seadrill was trying to do this, and the following e-mail stating they had reached that goal, were about seven minutes apart.
    27 Jun 2013, 02:02 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    50+yrsVALUEinv.Ace.Tru...

     

    BINGO! JF is doing it again + again! With the speed of light.With one hand, buying a gem = a gem because it has 2 units PLUS 2 under construction PLUS 2 under option. With the other hand, stealing the march on the competition in Brazil, with a redoubtable Asian partner.
    Will SDRL stock price follow? Certainly NOT with the speed of light, with most of the mega investors I know sleeping at the switch.
    But here is my bold prediction: SDRL marches into the USD50's zone around year end. Followed by USD60's zone on the cusp of 2014/15.
    27 Jun 2013, 11:00 PM Reply Like
  • FlaYankee
    , contributor
    Comments (123) | Send Message
     
    SDRL is being positioned aggressively to take charge as the demand for deep water drilling continues to climb. This is the John Frederickson way, he is a maverick and he charges in with Seadrills many shipbuilds to maximize profit potential. I admit his style makes some investors nervous and hesitant but he didn't become a billionaire by playing it safe. I feel quite confident in his style and invest in several of his companies and look forward to their bountiful dividends.
    28 Jun 2013, 01:24 PM Reply Like
  • wigit5
    , contributor
    Comments (4120) | Send Message
     
    JF spends money cuz he wants to make money.
    28 Jun 2013, 01:27 PM Reply Like
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