Knight Bridge Investment Consultants Limited – Ensco PLC Agrees Rowan Companies PLC Purchase

HONG KONG - Oct. 9, 2018 - PRLog -- Under terms of the deal, Rowan shareholders will receive 2.215 Ensco shares for each of their Rowan shares. The deal would offer Rowan shareholders roughly no premium based on Friday's closing price of $18.78. Ensco stockholders will own 60.5% of the combined company, with Rowan shareholders owning the remaining.

Ensco's market capitalization is currently $3.7 billion, while Rowan's is $2.4 billion, according to FactSet.

The deal is expected to close in the first half of next year.

As oil prices rise and some analysts predict the per-barrel price could reach $100, oil companies are anticipating a stronger environment for expensive offshore projects.

Ensco Chief Executive Carl Trowell, who will serve as executive chairman of the combined company said in prepared remarks that stakeholders in the combined firm will share in "meaningful cost savings and even greater upside to improving market conditions as the industry recovery continues gaining momentum."

The merged firm expects to save around $150 million in pre-tax expenses.

Ensco shareholders will also gain exposure to a joint venture that Rowan has entered into with Saudi Aramco, Mr. Trowell added.

Rowan's current CEO, Tom Burke, will serve in that role at the combined company, which will be based in the U.K.

Knight Bridge Investment Consultants Limited has been a long-time proponent of RDC and has been following closely their movements over the course of 2018. Whilst we are still waiting for some details on the merger, it is fair to say that Rowan investors look to benefit the most from the deal. KBICL has had a STRONG BUY (https://www.einpresswire.com/article/456640087/knight-bri...) rating on RDC since earlier in the year and will continue to monitor the transaction and bring you the latest news.

To find out more information on the opportunities Knight Bridge Investment Consultants see's within the US markets, specifically within the Oil and Gas sector or other performing sectors, visit www.knightbridgeinvestment.com or contact us at info@knightbridgeinvestment.com for further information.