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ALCO for stake in Norwegian co

Aban Loyd will acquire 33.76 per cent stake in Norway-based Sinvest ASA.

india Updated: Jun 16, 2006 13:42 IST

Leading offshore drilling services provider, Aban Loyd Chiles Offshore Ltd (ALCO) today said its Singapore subsidiary will acquire 33.76 per cent stake in Norway-based Sinvest ASA.

Aban Singapore Pte entered into a definitive share purchase agreement with Skeie Group to acquire 2.04 crore shares, representing 33.76 per cent of voting share capital of Sinvest which is listed on the Oslo Stock Exchange.

The transaction is based on an equity value of about $1,320 million for Sinvest and an enterprise value of about $2,250 million, the company informed the Bombay Stock Exchange.

"The proposed acquisition of a large stake in Sinvest will enable ALCO to further its mission of becoming a significant global player in oilfield services industry," Aban Loyd Managing Director Reji Abraham said.

The substantial stake in Sinvest would help Aban Loyds current business and would place it into the league of top 10 offshore drilling service providers in terms of offshore drilling assets under management, it added.

UTI Bank Ltd acted as the mandated lead arranger for arranging the credit facilities for the transaction, while three other banks -- Bank of Baroda, Bank of India and Export-Import Bank of India were the lead arrangers. Motilal Oswal Investment Advisors Pvt Ltd acted as advisor for the transaction.

Sinvest is a large jack-up drilling company with a 50 per cent stake in Norway-based Venture Drilling AS, and the entire equity of Beta Drilling AS.