Borr Drilling to acquire 15 jackups from Transocean in $1.35-billion deal

HAMILTON, Bermuda -- Borr Drilling has announced the signing of a Letter of Intent with Transocean for the acquisition of 15 high-specification jackup rigs. The transaction consists of Transocean's entire jackup fleet, comprising 10 rigs in Transocean's fleet and five new-builds presently under construction at Keppel FELS.

Total consideration for the transaction is expected to be approximately $1.35 billion, and includes remaining contract backlog and remaining yard installments to Keppel FELS for the five new-builds. The board of directors of Keppel FELS has pre-approved the novation of teh new-building contracts.

A deposit, in line with what has been agreed between the parties, has been paid from Borr to Transocean. Borr has secured financing for the transaction through a private placement of equity securities. The transaction is subject to the parties executing definitive agreements and satisfying formal closing conditions, including a final approval from the boards of directors of both companies. Completion of the transaction is expected to take place before the end of May 2017.