By OGJ editors
HOUSTON, Mar. 23 -- Offshore drilling contractor Hercules Offshore Inc. agreed to acquire its larger peer Todco in a $2.3 billion stock and cash transaction.
The combined company will operate 33 jack up rigs, 27 barge rigs, 64 liftboats, 3 submersible rigs, 9 land rigs, and 1 platform rig. It will operate in 10 countries on five continents.
The boards of Todco and Hercules, both based in Houston, unanimously approved the transaction. Closing, expected in midyear, is subject to regulatory approvals and shareholders approval.
Upon completion, Todco shareholders will own 64% of the resulting company and Hercules will own 36%.
Terms call for Todco shareholders to receive 0.979 share of Hercules Offshore and $16/share in cash for each share of Todco stock.