Deals
Transocean Punished for Biggest Offshore Deal of Oil Downturn
- Company gains semi-submersible rigs and long-term contracts
- Transocean touches record low as investors worry about price
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Transocean Ltd. dropped to the lowest in more than two decades as investors panned its deal to buy Songa Offshore SE in the biggest offshore drilling industry deal since oil prices collapsed three years ago.
The enterprise value is about $3.4 billion, half of which is Songa debt assumed by the combined entity, the companies said. The 47.50 kroner ($5.97) a share offer implies an equity value for Norway’s Songa of about $1.2 billion. The transaction, pre-accepted by 77 percent of Songa investors, will be settled in shares, cash and a convertible bonds.