Saipem has signed an agreement with KCA Deutag (KCAD) to sell the entirety of its onshore drilling operations in exchange for a cash consideration of $550 million, plus 10% stake in the combined entity. The transaction does not entail any financial debt transfer from Saipem to KCAD.
Saipem operates its onshore drilling business globally outside Italy, with a focus in the Middle East and Americas, in 13 countries with around 4,000 people and with a portfolio of 83 proprietary land rigs. The company said in a statement that the sale would allow it to focus on its offshore drilling business.
Saipem’s onshore drilling business posted full year 2021 revenues of 347 million euro and adjusted EBITDA of €82 million; adjusted EBITDA of the business is expected to represent around 20% of the full year 2022 consolidated adjusted EBITDA of Saipem.
Final consideration is subject to customary closing adjustments. The transaction is expected to close by 31 October 2022 for the activities in the Middle East and by 31 March 2023 for the Americas.