ADES: Shelf Drilling OKs acquisition with revised cash consideration

09:16 AM (Mecca time) Argaam
ADES Holding says merger remains subject to customary closing conditions and regulatory approvals

ADES Holding says merger remains subject to customary closing conditions and regulatory approvals


Shelf Drilling Ltd. shareholders approved the proposed merger with ADES Holding Co. based on the revised cash consideration, during the extraordinary general meeting held on Oct. 6 with the required majority (99.6% votes).

 

ADES said in a statement to Tadawul that the completion of the merger remains subject to customary closing conditions and other regulatory approvals. The transaction timetable remains unchanged with closing expected to occur in Q4 2025. In September, ADES announced an agreement between Shelf Drilling and ADES International Cayman on the revised terms of the proposed merger to acquire Shelf Drilling, Argaam reported.

 

The new terms include increasing the cash consideration by 32% to NOK 18.50 per share (SAR 7.03), up from the previously offered NOK 14 (SAR 5.12).

 

In August, ADES International Holding Ltd., a subsidiary of ADES Holding Co., signed an agreement to acquire all issued and outstanding shares of Shelf Drilling Ltd. through a cash merger governed by the laws of the Cayman Islands, under which Shelf Drilling will remain a surviving entity.

 

The transaction was valued at approximately SAR 1.42 billion ($379 million), reflecting a fully diluted equity value based on a price of NOK 14 per share in Shelf Drilling.

 

Deal Before and After Amendment

 

 

 

 

Item

Initial Deal

Amended Deal

 

Transaction Value

$379 mln (SAR 1.42 bln)

$520 mln (SAR 1.95 bln)

 

 

Number of Acquired Shares

Nearly 278 mln shares

 

 

NOK to USD Exchange Rate

NOK 10.26 per $1

NOK 9.83 per $1

 

 

Transaction Date

Aug. 5, 2025

Sept. 15, 2025

 

 

Share Price

NOK 14 (SAR 5.12)

NOK 18.50 (SAR 7.03)

 

 

Estimated Annual Cost Synergies

$40–50 mln

$50–60 mln

 

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.