Noble Corp will add to its portfolio following its announcement of a definitive merger agreement to acquire Diamond Offshore Drilling. As part of the transaction, Diamond shareholders will receive 0.2316 shares of Noble, plus cash consideration of $5.65 per share for each share of Diamond stock, representing an 11.4% premium to closing stock prices on June 7, 2024. Upon closing, Diamond shareholders will own approximately 14.5% of Noble’s outstanding shares.
Following the transaction, which is expected to close by Q1 2025, Noble will own and operate a fleet of 41 rigs including 28 floaters and 13 jackups. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and the approval of Diamond shareholders.
“This acquisition enables Noble to continue our journey of delivering superior innovation and value to a broad range of the leading offshore operators across the world. Our position will be strengthened with the addition of four seventh-generation drillships and one of the most high-spec harsh-environment semisubmersible rigs in the world,” said Robert Eifler, Noble President and CEO.
Noble intends to fund the cash portion of the transaction through new debt financing, which Noble has secured through a $600 million committed bridge financing facility. At closing, the Noble Board of Directors will be expanded to include one member from the Diamond Board.
“This combination is an ideal outcome that provides Diamond shareholders both immediate and long-term upside potential as part of a more fully scaled platform that can deliver customer and shareholder value on a through-cycle basis, more visibly and accessibly, while gaining access to Noble’s robust dividend program. Noble’s operational strength, service posture and proven integration capabilities make this a natural match for Diamond,” said Bernie Wolford, Diamond Offshore Drilling President and CEO.（2024-06-10）