April 4, 2006
Noble sells Smedvig stake
John Fredriksen's SeaDrill said today that it now controls 99 percent of the capital of Smedvig ASA.
Noble Corporation yesterday filed a notice with the SEC saying that on March 31 it had submitted its acceptance of SeaDrill's mandatory offer for all outstanding shares of Smedvig.
Noble had acquired 39.2 percent of Smedvig Class A shares and 28.9 of the total capital shares of Smedvig in a deal with Smedvig family members at a price of NOK 200 per A share and NOK 150 per B share. Total cost to Noble was approximately US$ 691,100,00. Noble financed this with $700,000 of new debt borrowings.
The SeaDrill mandatory offer price for the outstanding shares was NOK 205 per A share and NOK 165 per B share.
However, the 8-K filed yesterday by Noble notes that the terms of the Share Purchase Agreement under which it acquired its Smedvig holding "provide that the amount received by us upon any resale of the Owned Shares during the period through December 12, 2006 at a price in excess of the Noble Purchase Price (NOK basis) is payable by us to the Sellers, as a purchase price adjustment."