Offshore drilling contractor Seadrill has purchased from Mermaid Maritime the minority holding of the share capital of Asia Offshore Drilling (AOD). Following completion, Seadrill will maintain all the share capital of AOD.
AOD is an related firm of Mermaid Maritime and Mermaid holds a 33.76 per cent stake in AOD with the remaining stake held by an affiliate of Seadrill.
In 2018, Mermaid entered right into a transaction help settlement with Seadrill and that settlement offered inter alia that Seadrill would grant to Mermaid a put choice in respect of its shares in AOD.
On 11 September 2020, Mermaid exercised the put choice to promote all of its shares in AOD to Seadrill.
In an replace on Monday, Seadrill Limited introduced its acquisition of the minority holding of 33.76 per cent of the share capital of AOD.
The consideration for the shares in AOD is $31 million and it’s anticipated that completion of the share switch and cost of the consideration will happen by the tip of September 2020.
The consideration had been mutually agreed between Mermaid and Seadrill considering, inter alia, two unbiased valuations of the three jack-up drilling rigs owned by AOD performed in August 2020 and the web guide worth of the opposite web belongings of AOD.
Following completion, Seadrill will, by means of its subsidiary Seadrill Rig Holding Company Limited, maintain 100 per cent of the shares in AOD.
Explaining the rationale behind the disposal of shares in AOD, Mermaid stated that, in gentle of the Covid-19 pandemic, the offshore drilling business has been significantly affected on all fronts, with a drought of latest contracts, early termination of some current drilling contracts and/or renegotiation of current day charges.
As such, Mermaid’s choice was to decide on to exit AOD right now in an effort to minimise its publicity to the difficult business situations and shield its money place.
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