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Anthony Petrello Announces Nabors’ Planned Acquisition Of Tesco Corporation

Home | Business | Anthony Petrello Announces Nabors’ Planned Acquisition Of Tesco Corporation

Nabors industries Ltd. is set to acquire Tesco Corporation, a Houston-based oil field services company, in an all-stock deal. Tesco Corp. is based in Bermuda but its main offices are in Houston. Anthony Petrello, the president and chief executive officer of Nabors Industries, announced to the public details of the deal.

According to Petrello, the deal will be closed in the last quarter of 2017. Nabors will buy each of the company’s common shares at $4.62 each. This price is based on the closing price of Nabors’ stocks on August 11. This price is 19 percent higher than the value of Tesco’s stocks on the same day. In addition, the valuation represents a 30 percent premium of Tesco’s enterprise value, which is based on the company’s cash balance as on June 30, 2017.

The deal is expected to close earlier than 14th of February 2018. Once the deal is completed, the shareholders of Tesco will gain about 10 percent ownership of Nabors Shares. However, if the deal does not close by the given date, the two companies have agreed that Tesco will pay Nabors Industries $8 million. The exact details of the deal have been filled with the U.S. Securities and Exchange Commission (SEC). This information was originally published on Biz Journals as explicated in the following link https://www.wsj.com/articles/SB10001424127887324392804578358772612205556

Under the deal, Tesco’s rig equipment manufacturing and rental business will merge with Nabors’ rig equipment subsidiary, Canrig. Moreover, Nabors Drilling Solutions will be boosted by Tesco’s tubular services businesses.

Tesco is the designer and manufacturer of technology-based solutions to companies in the upstream energy sector. It also services the systems of their client companies to ensure that they are in ideal operating conditions. Nabors is the world’s largest land-based petroleum drilling company. The company is known to have the largest fleet of drilling rigs. Moreover, it owns a number of offshore platform rigs that are used by oil companies operating in the high seas. The company offers directional drilling services.

About Anthony Petrello

Anthony Petrello is one of the most influential executive leaders in the oil drilling industry. He is credited for enhancing the growth of the company. In 2014, Petrello was the highest paid American CEO with over $68.2 million in compensation. He holds a Juris Doctor (J.D) degree from the prestigious Harvard Law School. He is also an alumnus of Yale University where he earned his bachelors and master’s degree in mathematics.