Transocean Buys All Of Transocean Partners

(RTTNews) - Offshore drilling company Transocean Ltd. (RIG) has agreed to buy Transocean Partners LLC (RIGP) in an all stock deal.

Transocean said it will buy back the remainder of shares in the limited liability component Transocean Partners that it does not own already.

Transocean Partners common unitholders will receive 1.1427 Transocean shares for each Transocean Partners common unit. This represents a 15% premium to Transocean Partners' closing price on July 29, 2016. Transocean expects to issue approximately 22.7 million shares in the merger.

Transocean will have indirectly acquired the 51% ownership interests in the Discoverer Inspiration, the Discoverer Clear Leader and the Development Driller III that are currently owned by Transocean Partners.

"We are excited about this merger, as it provides significant and immediate benefits to Transocean in the form of simplified administration and governance, tangible cost savings and improved liquidity," said Jeremy Thigpen, President and Chief Executive Officer of Transocean. "The contemplated all-equity transaction is entirely consistent with Transocean's current liquidity objectives."