SapuraKencana Petroleum shareholders approve deal with Seadrill

SapuraKencana Petroleum shareholders approve deal with Seadrill
Business & Markets 2013
Written by Bernama
Tuesday, 23 April 2013 16:32


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KUALA LUMPUR (April 23): SapuraKENCANA PETROLEUM BHD [] shareholders have approved the proposed integration of the group's tender rig businesses with that of Seadrill Ltd.

The approval, announced today after SapuraKencana's extraordinary general meeting (EGM), allows the group to take over Seadrill's 18 tender rigs, including the full tender rig organisation for US$2.825 billion.

Shareholders also voted in favour of the placement of 587 million new shares at RM2.80 per share.

"The combination of the respective tender rig businesses provides a strategic platform to create one of the world's leading tender rig operator and broaden our footprint to become a truly global offshore services provider," the group said in a statement issued after the meeting.

President and Group Chief Executive Officer Datuk Seri Shahril Shamsuddin said the strong endorsement from its shareholders was a clear validation of the strength of SapuraKencana's business model.

Following the transaction, the group would own 21 operating tender rigs, including five new builds under CONSTRUCTION [], thus holding 55 per cent market share in the global tender rigs segment.

This exercise would deepen SapuraKencana's long-standing partnership with the leading Norwegian global drilling company, through the latter's increased equity interest in the group of 12.5 per cent, from 6.4 per cent, previously.

The deal would also enable a representative from Seadrill to sit on the SapuraKencana board, bringing on a wealth of international experience, expertise and market connections.