Sevan Drilling ASA: Announcement From the Independent Directors
Oslo, 27 June 2013:
Reference is made to the announcement this morning made by Seadrill Limited ("Seadrill") concerning its offer to acquire up to 50.1% of the outstanding shares in Sevan Drilling for NOK 3.95 per share, as announced on 26 June 2013.
The independent (non-Seadrill related) members of the board of Sevan Drilling (the "Board") notes that Seadrill reports having acquired an additional 116,934,875 shares, following which Seadrill now controls 297,893,964 shares in the company, equivalent to 50.1% of the shares outstanding.
The Board notes that Seadrill as a consequence of exceeding the mandatory offer threshold has announced that it will launch a mandatory offer for the remaining outstanding shares in Sevan Drilling. Pursuant to the Norwegian Securities Trading Act, such offer must be made within four weeks of today, and be free of conditions, for cash consideration and at a price no lower than the highest price paid by Seadrill the past six months. The Board also notes that Seadrill has announced an intention to call an extraordinary shareholders meeting where it will propose a new board reflecting its new level of ownership, management arrangements and an alternative financing plan.
The Board believes that a price of NOK 3.95 undervalues Sevan Drilling's assets and prospects, and represents a significant discount to latest analyst consensus net asset value estimates and target prices. The Board further believes that the financing plan proposed by Sevan Drilling on 19 June 2013 was an attractive proposition and in the best interests of all shareholders.
The Board will revert with formal opinions on the offer and further guidance for shareholders regarding any future action in due course, once the details of Seadrill's offer, financing solution and other propositions have been reviewed and considered. As part of its considerations in this respect, the Board will together with its advisors consider how to preserve the best interests of the company for its shareholders and other stakeholders.
For further information, please contact:
Kristian Johansen, deputy chairman of the board (+ 47 476 03 334)
About Sevan Drilling:
Sevan Drilling ASA is an international offshore drilling contractors specializing in the ultra deepwater segment. Sevan Drilling ASA is listed on Oslo Børs.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.