SDSD Sells Stake in Dolphin Drilling

Øystein Stray Spetalen-controlled S.D. Standard ETC (SDSD) has recently divested its stake in semisub rig owner Dolphin Drilling.

According to a filing with the Oslo Bors, SDSD sold nearly 50 million shares of Dolphin Drilling, representing a 17.1% stake in the offshore drilling company. The transaction saw the shares being sold for NOK1.1 per share, totaling NOK 55m ($4.9m). As a result, SDSD no longer holds any stake in Dolphin Drilling.

The shares were sold through a placing of shares, with Svelland Capital Trading acquiring 30 million shares and BO Steen Shipping purchasing 15 million shares. This has increased Svelland Capital’s stake in Dolphin Drilling to approximately 34% and BO Steen Shipping’s stake to around 10%. Strategic Value Partners remains a significant shareholder in the company, holding approximately 24% of the shares. Arctic Securities and DNB Markets acted as joint bookrunners for the share placement.

In addition to the shares, Svelland Capital Trading and BO Steen Shipping have also jointly acquired SDSD’s portion of the outstanding shareholder loan. The loan documents include a market cap covenant for Dolphin Drilling of no less than NOK 600m ($53.6m).

With SDSD no longer holding a stake in Dolphin Drilling, the company will initiate the process of forming a nomination committee to review the board structure. SDSD was previously represented on the board of directors.

This divestment by Øystein Stray Spetalen-controlled SDSD follows a similar move in September 2024 when part of the stake held through Ferncliff TIH was sold. SDSD initially acquired the stake in Dolphin Drilling in May 2022.