Noble to Acquire Diamond Offshore in Stock and Cash Deal
Noble Corporation has agreed to acquire Diamond Offshore Drilling, Inc in a stock plus cash transaction. Diamond shareholders will receive 0.2316 shares of Noble plus a cash consideration of $5.65 per share, marking an 11.4% premium to Diamond's closing stock prices on June 7, 2024. The transaction is valued at approximately $15.52 per Diamond share and is expected to close by the first quarter of 2025, pending regulatory and shareholder approvals.
The acquisition will enhance Noble's fleet, increasing it from 31 to 41 rigs with the addition of four 7th generation drillships and a high-spec harsh environment semisubmersible rig. The combined entity will have a backlog of around $6.5 billion, including $2.1 billion from Diamond. Noble expects the transaction to be immediately accretive to its free cash flow per share and to accelerate its return of capital to shareholders. Following the merger, Diamond shareholders will own approximately 14.5% of Noble's shares. Additionally, Noble's Board of Directors has approved a 25% increase in its quarterly dividend to $0.50 per share.
