Eurasia Drilling shareholders approved delisting of the company


Moscow. November 13. Shareholders of Eurasia Drilling Company (EDC) approved the scheme of the transaction in which the company will withdraw from the London stock exchange (LSE) and will be private, the message EDC.

The deal, approved by 89.3 per cent of shareholders have agreed, involves a merger with EDC Acquisition Company Limited (EACL) is a structure formed by the main shareholders of Eurasia Drilling.

About the proposed deal was announced on 8 October, shortly after the refusal from the purchase of Schlumberger Eurasia Drilling. Major shareholders are offered the minority shareholders to sell their shares at $10 apiece, and later the price was raised to $11,75 per share.

After approval by the shareholders, the merger plan will be submitted to the regulator in the Cayman Islands (16 November). After approval of the plan by the regulator, the merger will be legally effective.

It is anticipated that the Depositary Bank for the GDR programme Eurasia Drilling – The Bank of New York Mellon will make payments to the holder of receipts on November 20. For financing transactions the company has attracted three-year loan of $150 million at LIBOR+3.6% and an annual credit of $150 million at LIBOR+3,8%. The remaining amount the company will pay from its own funds.

It is expected that the GDR program will be closed on November 16, EDC GDRs will cease to be traded on the LSE tentatively on November 18.

As reported, a minority shareholder in Eurasia Drilling Fund United Capital Partners (UCP, owns 1,825% of the company) – counted low price of $11,75, proposed as part of the offer. UCP called all the shareholders have agreed to seek legal advice and representation by lawyers in the Cayman Islands and formally notify EDC of its disagreement with the merger up to the date of the extraordinary General meeting of shareholders.

The largest shareholders are Eurasia Drilling CEO Alexander Djaparidze (30,2%), his partner – former head of “Rosneft” Alexander Putilov (22.4 percent). It is also known that 3% of the shares belongs to the head of “LUKOIL” Vagit Alekperov, who owns shares of oilfield services company through funds. Free float is 30%.