ESV - Rowan Ekes Out An Extra 24.2% Out Of Ensco
Image: Drillship Rowan Reliance. Courtesy: Offshore Post.
Merger thesis
We learned this week from Ensco (ESV) the following:
[T]he Company has entered into an amendment to the transaction agreement with Rowan Companies plc (RDC) under which the companies will combine in an all-stock transaction.
According to the new deal, Rowan shareholders will receive 2.750 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own approximately 55% and 45%, respectively, of the outstanding shares of the combined new company. There are no financing conditions for this transaction.
Rowan's