Noble Corp. to buy Pacific Drilling in all-stock deal | Seeking Alpha
Thanks, Craig. Following this morning's press release, we are excited to announce today that Noble and Pacific Drilling have agreed to combine in an all-stock transaction. The strategic rationale for this transaction is compelling and bring several important benefits to the shareholders and stakeholders of both companies. First, it brings a high-quality fleet of drillships under Noble's banner. Noble has differentiated itself through the full utilization of our drillship fleet. For the first time in several years, we will now have rigs to bid into the various opportunities we see upcoming, including prospects with our existing customers as well as the excellent customer base that Pacific brings with it.
Additionally, the transaction brings a talented group of people who share Noble's commitment to safety and operational excellence. While Pacific doesn't share the lengthy history of Noble, the organization has been defined by operational excellence since its inception, and I have every confidence that their cultural values match closely with Noble's.
It is financially compelling with Pacific bringing a net cash position at closing. And lastly, the combination will create a more efficient operational structure at a time when operating efficiently is a crucial factor to success in our industry.
Now let me go into a bit more detail on each of these subjects. As Craig mentioned, we have posted a slide presentation on our website, and I will reference it occasionally during my comments for anyone wishing to follow along.
On Slide 2, under the terms of the merger agreement that was unanimously approved by the boards of both companies, Pacific Drilling equity holders will receive 16.6 million newly issued shares of Noble. Pro forma for the transaction, Noble shareholders will own 75.1% of the combined company and Pacific Drilling's will earn 24.9%. The Noble Board of Directors and senior executive team will remain in place.
