Seadrill reduces stake in SapuraKencana Petroleum Bhd
Seadrill Limited has sold 230 million shares of SapuraKencana raising approximately US$300 million in proceeds, the company said in its press release. The total economic gain realized from this sale is approximately US$165 million. Following the completion of this transaction Seadrill will continue to own approximately 490 million shares, representing an approximate 8% ownership stake in SapuraKencana. Tor Olav Trøim will continue to serve as a board member of SapuraKencana with John Fredriksen as an alternate director.
On April 30, 2013 Seadrill increased its ownership stake in SapuraKencana to 12% as a result of the integration of its tender rig business into SapuraKencana. The target was to develop a strong leading player in the Far East integrated service market. Since completion of this transaction, SapuraKencana has made significant progress integrating the two businesses and taking delivery of an additional 3 tender rigs under construction at the time of the transaction. This progress has partly been reflected in the positive share price development.
Seadrill remains a long-term strategic investor in SapuraKencana and, in connection with the sale, has entered into a lock up agreement for its remaining shares until the end of 2014. Seadrill will continue to support SapuraKencana's strategy of growing its broad offshore service portfolio. SapuraKencana has strengthened its position in the Asian market and has significant international growth opportunities. SapuraKencana's position as an integrated service provider and upstream leaseholder creates a competitive advantage in the region. Having acquired Seadrill's tender rig assets, SapuraKencana is in an ideal position to serve field developments on a global basis as well.
John Fredriksen, Chairman, President and Director of Seadrill says in a comment, "We are very pleased with the progress to date of our partnership with SapuraKencana, both in the integration of the tender rig business and in the development of our successful PLSV joint venture in Brazil. We are today working together on several new businesses with the target of creating new growth opportunities supported by long term contracts. Our support for one of our closest partners is unwavering and we look forward to many years of future cooperation."
