ADES makes improved offer for Shelf Drilling
ADES Boosts Offer for Shelf Drilling Merger
Saudi oil and gas driller ADES has enhanced its bid to acquire all outstanding shares of Dubai-based Shelf Drilling. The revised proposal now offers NOK 18.50 ($1.89) per share, significantly increasing the cash consideration from the initial offer of NOK 14.00 ($1.43). This new offer has garnered strong support, with 53.4% of shareholders expressing their commitment to the merger, a notable rise from the previous 15% backing.
Details of the Revised Offer
The updated terms of the merger have been unanimously endorsed by Shelf Drilling’s board of directors. The increase in cash consideration reflects a reassessment of Shelf Drilling’s market position and the fundamentals of the jackup market. Additionally, ADES has revised its cost synergies estimate, projecting annual savings of $50-60 million, up from the previously estimated $40-50 million. This strategic move aims to enhance the financial viability of the merger and align with current market conditions.
Shareholder approval for the revised offer will be sought at an extraordinary general meeting scheduled for around October 6, 2025. The completion of the merger is anticipated in the fourth quarter of 2025, pending the necessary approvals. The initial offer was already attractive, presenting a 62% premium over Shelf Drilling’s share price of NOK 8.64 ($0.88) on August 4. The significant increase in the offer reflects ADES’s commitment to securing the merger and capitalizing on the potential synergies between the two companies.
