Nabors Industries Ltd will be acquiring Tesco Corp which is based in Houston during an all-stock transaction. Nabors Industries is based in Bermuda has its headquarters located in Houston. The deal between the two companies is set to close during the 4th quarter of 2017and the Tesco common stock will be valued at $4.62 for each share. This will be based on Nabors shares closing price on August 11th. Every outstanding share at the Tesco common stock is set to be exchanged for 0.68 Nabors common shares. After closing of the deal, the shareholders at Tesco will own approximately 10% of the shares of Nabors.
In case the deal fails to close by February 14th, 2018, Tesco Corp will pay $8 million to Nabors Industries. This was according to a filling made with the US Securities and Exchange Commission. Tesco specializes in designing, manufacturing and servicing technology based solutions for the industry of upstream energy. Narbors Industries Ltd operates and also owns the largest land-based drilling rig fleet in the world. The company also offers offshore platform rigs, performance tools and directional drilling services. The deal is set to combine Nabors’ rig equipment subsidiary, Canrig with the rig equipment manufacturing of Tesco, aftermarket and rental services business.
In the first year, the operating synergies are set to be approximately $20 million after which it will be followed by the full run-rate synergies worth $30 million-$35 million. This was stated by Anthony Petrello who is the President, Chairman and CEO at Nabors Industries.
Anthony Petrello is known as one of the most important people in the United States. He was once among the highest paid CEO in the US with earnings of $68.2 million in 2014. Anthony Petrello has led Nabors Industries to become the top firm when it comes to drilling of oil and natural gas. He went to study Mathematics at Yale University after being awarded with a full scholarship to the university. He also went to Harvard Law School for his graduate studies and pursued Human Sciences. Anthony Petrello worked with Nabors Industries Ltd for almost 30 years before he was finally appointed as the CEO.
Anthony Petrello Social Media: https://twitter.com/tony_petrello