The offer represents a premium of 18.7% over the closing price of Awilco Offshore (AWO) shares and a premium of 42.4% over the closing price on May 29, 2008, the last day prior to AWO confirming a third party had expressed an interest in acquiring the company.
AWO’s board of directors has unanimously decided to recommend the offer. In addition, Awilco AS and Aweco Holding AS, representing in aggregate 40.11% of the outstanding shares in AWO, have undertaken to accept the offer with respect to their shareholdings in AWO.
The offer will be made by China Oilfield Services (COSL) Norwegian AS, a Norwegian company 100% owned by COSL. The acquisition will be financed by way of internal resources of COSL and committed external financing from banks.
The combination of COSL and AWO is expected to create the world’s eighth largest rig fleet, consisting of 34 operated rigs with operation and growth opportunities in most major international markets.
