Eurasia Drilling (EDCL) – Schlumberger buys into Russian driller at significant premium
US oil services giant Schlumberger is acquiring a minority stake in London listed Russian onshore drilling group Eurasia Drilling which is also delisting its GDRs from the London market at an 81% premium to the prior closing price
Schlumberger is acquiring a 46% stake in Eurasia Drilling for US$1.7bn, less US$200m in non-compete agreements and call options. The call option will allow Schlumberger, at its election, to purchase the remaining shares in EDCL during a two-year period commencing three years from the closing of the transaction. Eurasia Drilling Company Limited (EDC) is the largest onshore drilling contractor in the CIS, and the only Russian independent offshore contractor with 695 rigs delivering drilling, sidetracking and workover services both on and offshore. In connection with the agreement, the principal shareholders of EDCL will take the company private. The Merger Consideration…