Atwood Oceanics, Inc. (NYSE: ATW) is off to an incredibly strong start in the market this morning, and for good reason. Acquisition news hit the wire, causing excitement among investors and sending the stock skyward. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:49), ATW is trading at $10.10 per share after a gain of $2.02 per share or 25.00% thus far today.
ATW Gains On Acquisition News
As mentioned above, Atwood Oceanics is off to an incredibly strong start in the trading session after announcing that it has entered into a definitive acquisition agreement with Ensco. Under the agreement, Ensco will be acquiring the company in an all-stock transaction. ATW shareholders will soon receive 1.60 shares of Ensco per share of Atwood owned, representing of premium of about 33%. As a result, Ensco shareholders will own 69% of the combined company while ATW shareholders will own 31% of the combined company. In a statement, Rob Saltiel, CEO at Atwood, had the following to offer…
“The combination is an ideal strategic fit. Both companies are passionate about operational excellence, safety and customer satisfaction with core values and cultures that are perfectly aligned. We believe the combined company will offer an unmatched rig fleet and workforce. These attributes, anchored by a strong balance sheet, should enable the company to thrive as market conditions improve and allow Atwood shareholders to fully participate in the market recovery.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching ATW incredibly closely. While the agreement surrounding the acquisition has been signed, it is still subject to customary closing conditions. So, we’ll continue watching to ensure that the transaction happens without issue. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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