UK-based Ensco and US-based Rowan Companies have merged to form offshore drilling service company Ensco Rowan.
Under the terms of the transaction agreement, Rowan shareholders received 2.75 Ensco shares for each Rowan share they owned immediately prior to closing. Legacy Ensco and Rowan shareholders own approximately 55 and 45 per cent, respectively, of the outstanding shares of Ensco Rowan.
Following the closing of the transaction, ordinary shares of the combined company have been consolidated through a 4:1 reverse stock split, resulting in approximately 197 million ordinary shares outstanding.
Ensco Rowan will maintain its headquarters in London while having a significant presence in Houston, Texas, the company said in a statement.