Tag: tubular business from Nabors

Anthony Petrello is about to Witness Tremendous Growth at Nabors Industries Following the Acquisition of Tesco Corp

In November last year, Anthony Petrello, Nabors Industry’s President presented the company’s strategy for its rig services in the future. The strategy involved enhancing the firm’s drilling rig. The company has entered into a deal that will substantiate this plan. The strategic deal involves acquiring Tesco Corp by the end of this year. Intrepid Partners oversaw the all-stock transaction as the financial advisors for Nabors Industries and .P. Morgan Securities LLC as Tesco’s financial advisors. Milbank, Hadley, & McCloy LLP and Stikeman Elliott LLP were Nabors’ counsel while Norton Rose Fulbright was Tesco’s legal advisors.

Shares Valuation

The shares at Tesco were valued based on the Nabor’s shares closing price on 11th August this year. The value was reached at $4.62 per share, which translated to 19 percent of Tesco’s shares closing value the same day. Based on Tesco’s cash balance at the close of the second quarter, the value represented 30 percent of the firm’s enterprise value. The deal states that Tesco shares will be traded with 0.68 of Nabors stocks. Tesco is projected to control about 10 percent of shares at Nabors Industry. According to a clause filed with the U.S Securities and Exchange Commission, Tesco will part with $8 million if the deal fails to succeed by 14th February next year.

Combined Strengths

The partnering of the two firms is aimed at enhancing the strengths in their service delivery. While Nabors Industries operates drilling rigs, Tesco manufactures them. The two companies will be able to complement each other in their area of expertise. The Nabors’ subsidiary, Canrig, will leverage from the manufacturing prowess at Tesco. Likewise, Tesco will gain a lot for its tubular business from Nabors.

About Anthony Petrello

Anthony Petrello has made a name for himself in the oil and gas industry. He joined Nabors Industries in 1991 where he worked his way up to his current position of the CEO. Before joining the sector, Anthony led successful career in the legal arena.

Besides his official engagements, Anthony Petrello has an active life in philanthropy. Inspired by his daughter Carena, who suffers periventricular leukomalacia, he supports the Texas Children’s Hospital.