Schlumberger could acquire 46.65% of Eurasia Drilling for $1.7 bln
MOSCOW. Jan 20 (Interfax) - Schlumberger could acquire 46.65% of oilfield services provider Eurasia Drilling Company (EDC) for $1.7 billion, EDC said in a statement.
The controlling shareholders intend to merge EDC with a special company, EDC Acquisition Company Limited, buying out minority shareholders at $22 per share or a premium of 81% over the closing price on the London Stock Exchange on January 19.
EDC's Global Depositary Receipts (GDRs) (one Global Depositary Receipts (GDRs) represents one share) will subsequently be delisted.
Schlumberger will provide the controlling shareholders in EDC with a loan of $991 million to buy shares from minority shareholders. Following EDC's delisting, the loan will be converted into shares in the company also at $22 a share. In addition, Schlumberger intends to buy another 14.98% of EDC to being its stake to 45.65%.
Schlumberger will also receive a call option to buy the balance of shares in EDC. The option is exercisable in whole (but not in part only) by SLB during a two year period commencing three years from completion of the acquisition of the 14.98% of the shares.
EDC will hold a shareholders meeting on February 16 to vote on the merger.
Shares in EDC soared 72% to $20.9 a share immediately following the announcement on January 20.