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Diamond Offshore Drilling (DO) +10.4% In Monday’s deal (NYSE: No) trades for about $1.6B in money and inventory, the most recent transfer in a wave of consolidation sweeping the power trade; Aristocrat Shares +5.8%.
Diamond Offshore (DO)) shareholders will obtain 0.2316 shares of Noble (No) plus the $5.65 per share they maintain, an 11.4% premium to the closing worth on June 7, which traders appear to assume is affordable; after the transaction is accomplished, Diamond shareholders will personal roughly 14.5% of Noble’s excellent shares.
Noble (NE) stated the deal would add 4 seventh-generation drillships and one of many world’s highest-spec harsh-environment semisubmersible rigs to its fleet.
The corporate estimates annual pre-tax value synergies at $100 million, 75% of which is predicted to be realized inside one 12 months of closing, and stated the deal can be instantly and considerably accretive to free money circulation per share and can improve its return of capital to the corporate Potential.
Noble (NE) additionally stated that its board of administrators accepted a 25% enhance in quarterly dividend to $0.50 per share beginning within the third quarter; the board can be expanded to incorporate a member from Diamond Offshore (DO).
Evercore ISI analyst James West wrote: “We view Noble’s acquisition as extremely strategic and the addition of 12 offshore floating platforms is predicted to boost the corporate’s income and money circulation by a long-term offshore improve cycle. Visibility.
