SDRL - Seadrill Announces Acquisition of Shares in Asia Offshore Drilling

Rhea-AI Summary

Seadrill Limited (OTCQX: SDRLF) has announced the acquisition of a 33.76% minority stake in Asia Offshore Drilling Limited (AOD) for USD 31,000,000. This acquisition aims to enhance Seadrill's position in the offshore drilling market by obtaining 100% ownership of AOD through its subsidiary, Seadrill Rig Holding Company Limited. The transaction is expected to close by the end of September 2020.

Positive

• Acquisition enhances Seadrill's market position by obtaining 100% ownership of AOD.
• Transaction value of USD 31,000,000 suggests confidence in AOD's assets.

Negative

• The acquisition may lead to financial strain due to the upfront cash requirement.

HAMILTON, Bermuda, Sept. 14, 2020 /PRNewswire/ -- Seadrill Limited ("Seadrill" or the "Company") (OSE: SDRL) (OTCQX: SDRLF) announces its acquisition of the minority holding of 33.76% of the share capital of Asia Offshore Drilling Limited ("AOD").

The consideration for the shares in AOD is USD 31,000,000, and it is expected that completion of the share transfer and payment of the consideration will occur by the end of September 2020. Following completion, Seadrill will, through its subsidiary Seadrill Rig Holding Company Limited, hold 100% of the shares in AOD.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodical reporting. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

CONTACT:

seadrill@hawthornadvisors.com

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SOURCE Seadrill Limited

FAQ

What was the value of Seadrill's acquisition of Asia Offshore Drilling Limited?

Seadrill acquired the minority stake in Asia Offshore Drilling for USD 31,000,000.

When is the completion date for Seadrill's acquisition of AOD?

The acquisition is expected to be completed by the end of September 2020.

What percentage of Asia Offshore Drilling will Seadrill own after the acquisition?

After the acquisition, Seadrill will own 100% of Asia Offshore Drilling.

How will Seadrill's acquisition impact its market position?

The acquisition will strengthen Seadrill's position in the offshore drilling market.