A company in Bermuda known as Nabors is set to acquire Tesco Corp which is based in Houston. Tesco is valued at $4.65 per share in comparison to the closing price of Nabors shares on 11th August this year. The whole stock transaction is scheduled to be over in the fourth quarter of this year. The deal states that every outstanding share of Tesco common stock shall be exchanged for 0.68 of Nabors common share. The shareholders of Tesco expected to have about 10 percent of shares in Nabors once the deal is ripe. The failure to complete this deal by the 14th day of February 2018, Tesco will have to pay Nabors a total of $ 8 million in accordance to the filings with the U.S Securities and Exchange Commission.
Tesco is famous for manufacturing as well as servicing technology based solutions for the energy industry. Nabors, on the other hand, operates the world’s largest drilling rig fleet that is located on the lands. It is also known for providing offshore platform rigs as well as performance tools. With this acquisition, the Nabors rig is expected to combine with the Tesco’s rig equipment manufacturing and service business. Nabors Drilling will in a great way benefit from Tesco tubular services business.
The chief executive officer of Nabors Tony Petrello revealed that the operating synergies are anticipated to be at about $20 million in year one and later a full run-rate of $30 million and $35 million consecutively. The Analyst Day presentation that made by Tony Petrello will be accelerated in a big way by the transaction.
Tony Petrello graduated from both Yale University and Harvard University. He earned his J.D. degree from the famous Harvard School of Law. In Yale University, he graduated with an MS degree in mathematics. He began working for Nabors in the year 1991 as the chief operating officer. After a year, he was promoted to become the president of the organization. He rose through the ladders to become the current chief executive officer, a position he has held since the year 2011. The organization recognizes him for his dedication.
Tony Petrello’s Social Media: https://twitter.com/tony_petrello