FX.co ★ Noble Corp. Agrees To Buy Diamond Offshore Drilling In $15.52/shr Stock Plus Cash Deal

Noble Corporation plc (NE) has entered into an agreement to acquire Diamond Offshore Drilling Inc (DO) in a deal involving both stock and cash.

Under the terms of the agreement, Diamond shareholders will receive 0.2316 shares of Noble, along with a cash payment of $5.65 for each Diamond share they hold. Post-transaction, Diamond shareholders will own approximately 14.5% of Noble's outstanding shares.

The total implied value of the cash and stock offer for Diamond shareholders is $15.52 per share, which reflects an 11.4% premium over Diamond's closing share price on June 7, 2024.

Noble intends to finance the cash portion of the deal through new debt, for which it has arranged a $600 million committed bridge financing facility. Upon completion, Noble's Board of Directors will expand to include one representative from Diamond's Board.

The transaction is anticipated to close by the first quarter of 2025 and has received unanimous approval from the boards of directors of both companies.

Additionally, Noble has announced a 25% increase in its quarterly dividend to $0.50 per share, starting with the dividend payable in the third quarter of 2024.