Nabors To Acquire Tesco Corp. For $4.62/share In All-Stock Deal - Quick Facts

(RTTNews) - Nabors Industries Ltd. (NBR), an operator of drilling rig fleet, announced Monday that it has agreed to acquire Tesco Corp. (TESO) in an all-stock deal. The transaction values Tesco common stock at $4.62 per share.

The company noted that each outstanding Tesco share will be exchanged for 0.68 common shares of Nabors. The deal price represents a 19% premium of the closing value of Tesco shares on August 11.

Tesco said the transaction value represents a 30% premium to its enterprise value, based on TESCO's cash balance as of June 30.

The transaction is subject to regulatory approval and customary closing conditions and is expected to close in the fourth quarter.

Upon consummation of this transaction, TESCO shareholders will own approximately 10% of the outstanding shares of Nabors.

Under the deal, Canrig, Nabors rig equipment subsidiary, will be combined with Tesco's rig equipment manufacturing, rental and aftermarket service business.

In addition, Tesco operates a tubular services business in numerous key regions globally, which will immediately benefit Nabors Drilling Solutions' operation.

The transaction has been approved by the boards of directors of both companies and is subject to approval by Tesco shareholders and the satisfaction of customary closing conditions and regulatory approvals.

In the transaction, Intrepid Partners served as exclusive financial advisor to Nabors. J.P. Morgan Securities LLC served as exclusive financial advisor to TESCO.

Michael Sutherlin, Tesco's Non-Executive Chairman of the Board, said, "With this transaction, Tesco will now have an expanded platform, which will allow for acceleration of its strategy and increase the potential for market share gains around key industry trends. The combination will provide significant value to Tesco shareholders by participating in a stronger and broader offering of complementary rig equipment product lines and tubular services."