TIDMADES
RNS Number : 1885R
ADES International Holding
13 June 2018
ADES completes the acquisition of three operational offshore
jack-up rigs from Nabors in the Arabian Gulf
(London & Dubai, 13 June 2018) ADES International Holding
Ltd. ("ADES" or the "Group") (LON: ADES), the London-listed company
providing offshore and onshore oil and gas drilling and production
services in the Middle East and Africa through its subsidiaries, is
pleased to announce that, following its initial announcement in
December 2017, the Group has completed the acquisition of three
operating offshore jack-up rigs in the Arabian Gulf from
subsidiaries of Nabors Industries Ltd ("Nabors") (NYSE: NBR) (the
"Transaction").
Transaction Highlights
-- The Transaction was completed for a total purchase price of
US$83 million, payable in a combination of cash and ADES
shares.
-- Consideration for the Transaction includes a cash payment
equivalent to 75% of the total Transaction value and the remaining
25% paid in the form of newly issued shares of ADES ("Consideration
Shares"), approved by shareholders at the ADES EGM on 18 March
2018.
-- The acquisition is expected to add approximately US$60
million annually to ADES' revenue, while maintaining the Group's
margins.
The acquisition closed on 12 June 2018, following the fulfilment
of the Conditions Precedent agreed upon in the Purchase and Sale
Agreement (PSA), which included the renewal of two of the rigs'
expired drilling contracts. The rigs are currently contracted by a
major national oil company in the Arabian Gulf and are expected to
add approximately US$140 million to ADES' backlog, while enabling
the Group to capitalise on its existing presence in the region.
The acquired rigs have been renamed to Admarine 655, Admarine
656 and Admarine 657. Admarine 655 is currently undergoing an ABS
recertification process in the shipyard, while Admarine 656 and
Admarine 657 will generate revenue immediately, with their material
impact expected to be weighted towards 2H2018 earnings.
Commenting on the acquisition, Dr. Mohamed Farouk, Chief
Executive Officer of ADES International Holding, said:
"This Transaction adds three offshore drilling rigs to our
existing fleet, thereby enhancing our position in our core business
and reflecting our continued commitment to the Arabian Gulf's
offshore shallow water drilling market. The acquisition brings our
jack-up offshore drilling rigs to thirteen, making us one of the
main players in the MENA region.
"The Transaction will have a positive impact our 2H2018 revenues
and ADES' cash flow-generating ability, and we look forward to
expanding further across the GCC markets through new
value-accretive acquisitions and tenders."
-Ends-
Enquiries
ADES International
Holding
Hussein Badawy
Investor Relations ir@adesgroup.com
Officer
T: +2 (0)2 2527 7111
Instinctif
David Simonson david.simonson@instinctif.com
George Yeomans george.yeomans@instinctif.com
Sarah Hourahane Sarah.hourahane@instinctif,com
T: +44 (0)20 74572020
NOTES TO EDITORS
About ADES International Holding
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle East and Africa, offering onshore
contract drilling as well as workover and production services. Its
over 1,200 employees serve clients including major national oil
companies ("NOCs") such as Saudi Aramco and Sonatrach as well as
joint ventures of NOCs with global majors including BP and Eni.
While maintaining a superior health, safety and environmental
record, the Group currently has a fleet of thirteen jack-up
offshore drilling rigs, three onshore drilling rigs, a jack-up
barge, and a mobile offshore production unit ("MOPU"), which
includes a floating storage and offloading unit.
investors.adihgroup.com
About Nabors Industries
Nabors Industries (NYSE: NBR) owns and operates one of the
world's largest land-based drilling rig fleets and is a provider of
offshore platform rigs in the United States and numerous
international markets. Nabors also provides directional drilling
services, performance tools, and innovative technologies for its
own rig fleet and those of third parties. Leveraging advanced
drilling automation capabilities, Nabors' highly skilled workforce
continues to set new standards for operational excellence and
transform our industry.
investor.Nabors.com
Forward--looking statements
Certain statements contained in this announcement, including any
information as to the Group's strategy, plans or future financial
or operating performance constitute "forward looking statements".
These forward-looking statements can be identified by the use of
forward looking terminology, including the terms "believes",
"estimates", "anticipates", "projects", "expects", "intends",
"aims", "plans", "predicts", "may", "will", "seeks" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They
appear in a number of places throughout this announcement and
include statements regarding the intentions, beliefs or current
expectations of the Directors of the Company concerning, amongst
other things, the Group's results of operations, financial
condition and performance, prospects, growth and strategies and the
industry in which the Group operates.
By their nature, forward looking statements address matters that
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Forward looking statements are not guarantees of future performance
and the Group's actual results of operations and financial
condition, and the development of the business sector in which the
Group operates, may differ materially from those suggested by the
forward-looking statements contained in this announcement. In
addition, even if the Group's results of operations and financial
condition, and the development of the industry in which the Group
operates, are consistent with the forward-looking statements
contained in this announcement, those results or developments may
not be indicative of results or developments in subsequent
periods.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQZMGMVLZKGRZM
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