Eurasia Drilling Company: Announcement of Proposed Merger & to De-List GDRs
Eurasia Drilling Company Limited (the Company) announces that it has today agreed with certain members of the Company’s management team and certain significant shareholders (the Participants) the terms of a merger (the Merger) between the Company and EDC Acquisition Company Limited (EACL).
On 8 October 2014, the Company announced that EACL had made an offer of $10.00 per share, which was based on management’s view of the likely future performance of the Company. Following a detailed evaluation of the proposed merger by the Special Committee and its advisers and as a result of robust negotiations between the Special Committee and EACL, the parties agreed to a revised offer price of $11.75 per share (the Merger Consideration).
The revised offer represents an increase of 17.5% over the price per share originally offered by EACL on 8 October 2015. The Merger Consideration represents a premium of:
• 7.3% over the closing price of a GDR on 7 October 2015 (being the latest trading date prior to the announcement by the Company of the receipt of an offer from EACL); and
• 19.9% over the volume weighted average price of a GDR for the period from 1 October 2015 (being the first trading day after the Company’s investor call on 30 September 2015 following the termination of the proposed transaction earlier this year with Schlumberger) to 7 October 2015 (being the latest trading date prior to the announcement by the Company of the receipt of an offer from EACL).
