Lately, one of the concerns around offshore drilling specialist Transocean (NYSE:RIG) was what it was going to do with its balance sheet. Institutional investors don't generally appreciate under-exploited opportunities and there seemed to be a general sense that Transocean management needed to get a little more active. With Monday's announcement, those concerns seem to have abated for the time being.
The Deal
Transocean announced that it had reached a deal to acquire Norway's Aker Drilling for $1.43 billion in cash. Transocean valued Aker at NOK 26.50, a 62% premium to the prior close. Aker also has debt on its balance sheet, so the actual deal value is more in the neighborhood of $2.23 billion (net debt of $0.80 billion).
To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/Transocean-Puts-Billions-To-Work-RIG-BP-STO-RDS-SDRL-DO-NOV0816.aspx
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