NE - Noble Corporation - Required Jackup Sale To Shelf Drilling Looks Just Bad

• Discussing proposed $375 million sale of five modern jackup rigs to competitor Shelf Drilling.
• Noble appears to be on the receiving end of the deal with Shelf Drilling picking up a fully operational subsidiary with sizeable backlog at a bargain price.
• Divestment has been required by the UK antitrust watchdog. As a result, anticipated closing of the merger has been delayed to the end of Q3.
• Frankly speaking, I would have preferred Noble to avoid this fire sale and rather terminate the merger with Maersk Drilling but both companies have been steadfast in their commitment to the transaction.
• Two weeks ago, I would have likely downgraded Noble based on the disappointing divestment terms but after the recent 30% sell-off, I decided to keep my "buy" rating on the shares.

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