Transocean To Acquire Ocean Rig In Cash, Stock Deal Valued At Approx. $2.7 Bln

(RTTNews) - Transocean Ltd. (RIG) and Ocean Rig UDW Inc. (ORIG) announced a definitive merger agreement under which Transocean will acquire Ocean Rig in a cash and stock transaction valued at approximately $2.7 billion, inclusive of Ocean Rig's net debt. The consideration is comprised of 1.6128 newly issued shares of Transocean plus $12.75 in cash for each share of Ocean Rig's common stock, for a total implied value of $32.28 per Ocean Rig share.

Upon completion of the merger, Transocean's and Ocean Rig's shareholders will own approximately 79% and approximately 21%, respectively, of the combined company.