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Shandong Offshore International in $165m takeover of Fredriksen's Northern Offshore

Shandong Offshore International in $165m takeover of Fredriksen's Northern Offshore
John Fredriksen’s Northern Offshore (NOF) has agreed a NOK1.3bn ($165m) takeover offer by Shandong Offshore International Company Limited.

The NOK7.59 per share offer by Shandong Offshore International has been unanimously recommended by the board of directors of NOF and undertakings to accept the offer have been received by approximately 65% of NOF’s shareholders, including Fredriksen’s Geveran Trading. A special general meeting of shareholders will be held on 15 July with a resolution requiring approval by more than 50% of NOF shareholders.

The takeover will see NOF merged with Shandong International Offshore subsidiary Blue Ocean Drilling with, the acquisition expected to become effective the first half of August.

“By retaining the NOF leadership team, when combined with our Blue Ocean Drilling leadership, we will have assembled a highly skilled and experienced team to direct and execute on our strategies as the new Northern Offshore Ltd. going forward,” said Yu Bing, director of Shandong Offshore International, and Sun Yuanhui, chairman of Blue Ocean Drilling.

Gary Casswell, president and ceo of NOF commented: “Combining the four under construction high spec jack-ups of Blue Ocean Drilling with Northern Offshore’s two under construction state of the art jack-ups with deliveries in 2016 through early 2018, we will realize organisational synergies and have the opportunity to build additional critical mass in our current operations in the North Sea and Asia Pacific as well as position us to pursue new clients in new areas.”