Seadrill (SDRL -0.7%) is set to launch a takeover bid for Asia Offshore Drilling after raising...


Seadrill (SDRL -0.7%) is set to launch a takeover bid for Asia Offshore Drilling after raising its interest in the owner of three jack-up rigs to 64.23% from 33.75%. An acquisition would strengthen SDRL’s position in the Asian jack-up market as the aging worldwide fleet of such units fuels demand and dayrates for newbuilds.

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  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    I like this deal for SDRL. It gets them 2 newbuilds nearly finished and 2 options. All 4 units are top of the line Keppel Fels jackups. These will fetch premium pricing. Also, SDRL is continuing to control newbuild slots at the shipyards effectively forcing day rates higher by limiting rigs available to speculation buyers. AOD needed 75% outside financing for these and even more for the 2 options newbuilds. SDRL has contracts in mind for these and will generate strong day rates when contracts are annouced. I like this deal.
    26 Oct 2012, 11:28 AM Reply Like
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