On Tuesday, offshore drilling contractor company Transocean Ltd. agreed to buy Ocean Rig UDW Inc. in a cash and stock transaction valued at around $2.7 billion, inclusive of Ocean Rig's net debt.
1.6128 newly issued Transocean shares and $12.75 in cash will be exchanged for each Ocean Rig share. That places Ocean Rig’s per share value at $32.28, or a 19.2% premium (based on Friday’s closing price). Transocean intends to fund the deal with a combination of cash and fully committed financing provided by Citi.