DDRLF - Noble to sell five jackup rigs for $375M to satisfy regulator concerns

Noble Corp. (NYSE:NE) said on Thursday it agreed to sell five jackup rigs for $375M to a newly formed subsidiary of Shelf Drilling Ltd.; shares -1.3%, resuming trading after a brief halt. The sale, which is subject to approval of the U.K. Competition and Markets Authority, is intended to address potential concerns identified by the CMA in its initial review of the proposed merger between Noble (NE) and Maersk Drilling (OTC:DDRLF). Noble (NE) said the Remedy Rig Sale Agreement includes the rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert and Noble Lloyd Noble. A divestment would have a material impact on the earnings power of the new Noble (NE), and the potential loss of the Noble Lloyd Noble - the world's largest modern jackup rig - would be particularly disappointing, Henrik Alex wrote in an otherwise bullish analysis posted in April on Seeking Alpha.

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Noble to sell five jackup rigs for $375M to satisfy regulator concerns