Chairman Tony Petrello Prepares Nabors Industries to Close on Purchase of Aftermarket Oil Service Company

In a highly-anticipated deal, Nabors Industries Ltd announced the intent of acquiring Tesco Corporation; an oil field servicing company. The deal was negotiated as an all stock business transaction and is set to conclude sometime during the fourth quarter of 2017. The value of Tesco Corporation’s common stock is estimated at $4.62 per share which coincides with the closing price of Nabors Industries Ltd share values on August 2017. The value represents a 19 percent premium of Tesco Corporation shares and a 30 percent premium of the company’s enterprise value, when compared to its cash balance sheet as of June 30, 2017.

As negotiated between the two companies, any outstanding value shares of Tesco Corporation’s common stock are set to be substituted for 0.68 common shares of Nabors Industries Ltd. Once the deal concludes, that value creates the prospect for Tesco Corporation shareholders to become part owners of Nabors Industries Ltd with ten percent ownership. The deal has until February 14, 2018 to close, or Tesco Corporation will have to forfeit $8 million in payment to Nabors Industries Ltd. The terms and conditions have already been filed with the U.S. Securities and Exchange Commission.

As the owner and operator of land based drilling rigs, Nabors Industries Ltd also provides operations for off-shore platform rigs and services for directional drilling. The deal aligns with the technology-based solutions that Tesco Corporation provides within the oil and energy industry. The deal creates a substantial benefit to Nabors Industries Ltd for having direct access to Tesco Corporation’s aftermarket tubular services.

Chairman and CEO Tony Petrello of Nabors Industries Ltd believes that the operating synergies signal a projection of $20 million within the first year of operations and could reach upwards of $35 million within the following year. Tony began with the company in 2003 and became Chairman in 2012. Tony’s stellar leadership for Nabors Industries Ltd allowed him to become the highest paid CEO nationwide in 2012. He is also an Executive board member of Children’s Hospital of Texas. To increase neurological research within the hospital, Tony’s contribution to a donation of $7 million helped fund the Jan and Dan Neurological Research Institute.

Learn More: www.wsj.com/articles/SB10001424127887324392804578358772612205556

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