ENSCO PLC (NYSE:ESV) Issues Shareholder Letter


ENSCO PLC (NYSE:ESV) issued letter to shareholders stating that shareholders have a vital decision to make pertaining the future of the firm at general meeting of shareholders on October 5, 2017. Shareholders are being asked to vote on company’s pending deal of Atwood Oceanics, Inc., which will further improve their competitive position and enhance long-term value for shareholders.

The details

Following a thorough market assessment and negotiation, and grounded on comparable deals, as well as the firm’s anticipations that this deal will generate total synergies and double-digit accretion that create over $585 million of present value at a discount rate of 10%, the Ensco Board unanimously decided that the pending deal of Atwood is in the best stakes of Ensco and its shareholders.

The deal will create a financially stronger international offshore drilling pioneer with distinct fleet capabilities, a diverse customer base and an international footprint spanning six continents with businesses in almost every major shallow- and deep-water basin.

Ensco reported that as shareholders may be aware, Glass Lewis has recommended that company shareholders vote in support of the deal. In making its recommendation, the advisory firm recognized the numerous strategic and financial merits of the acquisition, and the best timing of the deal, noting they find that the proposed deal seems strategically reasonable and financially acceptable from the viewpoint of company and its shareholders.

They recognize that the offshore drilling segment would likely gain from consolidation and that, in this respect, Ensco has taken a proactive measure to assessing a range of opportunities, including the prospective acquisition of assets and lucrative transactions.

Strategically, the proposed deal would result in a larger offshore drilling firm with a broader portfolio of assets. Ensco and Atwood currently have limited client overlap and the combined firm would have a broader and more diversified client base and a diversified geographic profile.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.