When Hercules Offshore agreed to buy Seahawk Drilling’s 20 jackup rigs, the obvious question was whether it planned to use them in the Gulf of Mexico. After all, Seahawk is only focused on the Gulf, and it is pricey to move rigs.
But Hercules chief executive John T. Rynd says he got a good deal on the rigs. Seahawk agreed late Friday to sell substantially all its assets to Hercules in a cash and stock deal. The deal includes $25m in cash and 22.3m Hercules shares, which, based on the February 10 closing price of $3.62 per share, put the value of the transaction at $105m.
The asset sale is to be done through a Chapter 11 bankruptcy filing in which Seahawk will seek expedited hearings to obtain court approval. The companies expect to the close the transaction – subject to the various approval required – in the second quarter of 2011.