Ades now owns all of Shelf Drilling: Ades International Holding, a subsidiary of Tadawul-listed Ades Holding, along with its Cayman-based arm BidCo, completed the takeover of Dubai-based and Oslo-listed Shelf Drilling, according to a press release (pdf). This finalizes the cashmerger transaction offered by Ades in September when it raised its bid to NOK 18.50 per share, up from NOK 14.

What’s next? Ades already kicked off its post-merger consolidation process, setting full integration in motion, which will see Shelf Drilling delisted from Oslo to become a wholly-owned private subsidiary of Ades.

REFRESHER- Ades’s revised bid valued Shelf at around USD 1.7 bn, up from USD 1.6 bn under the initial terms. The company already held 17.9% of Shelf ahead of the offer. Annual cost synergies were estimated at USD 50-60 mn, up from an earlier USD 40-50 mn range, with Ades saying it would tap its existing credit lines to fund the acquisition.

The acquisition folds Shelf’s fleet into Ades’s platform, creating a combined group with 123 rigs, 83 offshore units, and 40 onshore rigs and expanding Ades’s footprint to 19 countries. The combined platform, which now carries a contracted backlog of more than SAR 34 bn, will also operate with a wider commercial footprint and greater room to shift rigs between markets.

A debt cleanup is also underway: Ades said it will move ahead with plans to refinance Shelf Drilling’s outstanding USD notes due 2029 and Nordic bonds due 2028 instead before year-end, a step it expects will save more than USD 30 mn in annual interest payments once the legacy debt is replaced.

ADVISORS- SpareBank 1 Markets is quarterbacking the transaction as Ades’s sole financial advisor, with Schjødt and Maples Group providing counsel. Meanwhile, Evercore is advising Shelf Drilling, with Advokatfirmaet Thommessen, Conyers, and Latham & Watkins providing counsel.

About Shelf Drilling: Founded in 2012, Shelf Drilling operates across the Middle East, Southeast Asia, India, West Africa, the Mediterranean, and the North Sea. The company returned to profitability in 2024, posting USD 52.6 mn in net income after two years of losses, with revenues rising 8.5% y-o-y to USD 985.2 mn.

Market Reax: Ades’ share prices rose 1.6% to SAR 16.51 on market close.

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