Noble Corporation To Acquire Diamond Offshore Drilling In $15.52/Share Deal; Enhances Dividend Payouts By 25%
Portfolio Pulse from Lekha Gupta
Noble Corporation (NYSE: NE) is set to acquire Diamond Offshore Drilling (NYSE: DO) in a stock-plus-cash deal valued at $15.52 per share, representing an 11.4% premium over Diamond's closing price on June 7, 2024. The transaction is expected to close by Q1 2025. Noble will also increase its quarterly dividend by 25% to $0.50 per share starting Q3 2024. The deal is anticipated to generate $100 million in annual pre-tax cost synergies and boost Noble's free cash flow per share.
June 10, 2024 | 11:31 am
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POSITIVE IMPACT
Diamond Offshore Drilling (NYSE: DO) shares are trading higher following the announcement of its acquisition by Noble Corporation (NYSE: NE) at $15.52 per share, an 11.4% premium over its last closing price.
The acquisition announcement at a premium price has led to an immediate increase in DO's share price. The deal provides both immediate and long-term upside potential for Diamond shareholders.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Noble Corporation (NYSE: NE) is acquiring Diamond Offshore Drilling (NYSE: DO) and increasing its quarterly dividend by 25%. The deal is expected to boost Noble's free cash flow per share and generate $100 million in annual pre-tax cost synergies.
The acquisition and dividend increase are positive signals for investors, indicating potential growth in free cash flow and shareholder returns. The anticipated cost synergies further strengthen the financial outlook.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100