Transocean to sell 38 shallow-water drilling rigs

Sept 10 Mon Sep 10, 2012 1:42am EDT

Sept 10 (Reuters) - Transocean Ltd , owner of the world's largest offshore drilling fleet, said it will sell 38 shallow-water drilling rigs to Shelf Drilling International Holdings Ltd for about $855 million in cash.

The sale price includes $195 million in seller financing, bringing the total deal value to about $1.05 billion. Seller financing will be in the form of preference shares issued by an affiliate of Shelf Drilling, the company said.

Shelf Drilling is a newly formed company sponsored by private equity firms Castle Harlan Inc, CHAMP Private Equity and Lime Rock Partners.

Due to the sale of rigs, Transocean said it now expects its third-quarter 2012 results to include a non-cash charge.

In June, three sources told Reuters that Transocean has put its Middle East rig assets up for sale, in a deal likely to raise $1 billion for the Switzerland-based company.

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