Saudi ADES Makes $380m Offer to Acquire Shelf Drilling

Saudi oil and gas driller ADES has made a significant move in the industry by offering to acquire Dubai-based Shelf Drilling for NOK 3.9bn ($380m). The deal, which has been signed as a recommended offer, involves a cash merger financed through ADES’s available credit facility.

Upon completion of the transaction, all issued and outstanding shares of Shelf Drilling will be acquired by ADES, with shareholders receiving a cash consideration of NOK 14.00 per share ($1.36). This represents a 62% premium to Shelf Drilling’s share closing price on August 4 and is expected to close in the fourth quarter of 2025.

Following the acquisition, Shelf Drilling will become a wholly-owned subsidiary of ADES and will be delisted from the Oslo Stock Exchange. ADES has also committed to settling Shelf Drilling’s existing debt obligations as part of the transaction.

The board of directors of Shelf Drilling has approved and recommended the offer, believing that the proposed cash consideration offers fair value to its shareholders. Additionally, key stakeholders, including Castle Harlan, Perestroika, the company’s CEO and CFO, and board members, who collectively hold a 15% stake in the company, have provided irrevocable commitments to vote in favor of the merger.

Upon completion of the merger, the combined entity will have a fleet of 83 offshore jackups with a total backlog of $9.45bn as of June 30. ADES CEO Mohamed Farouk expressed confidence in the transaction, citing Shelf Drilling’s $1.5bn firm backlog and anticipated operational cost synergies of $40-50m as factors that will enhance the company’s global reach and provide continuous value to shareholders.