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Nabors, Pool to merge
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January 11, 1999: 9:42 a.m. ET
Oil driller, energy services company agree to stock swap valued at $518M
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NEW YORK (CNNfn) - Oil drilling company Nabors Industries Inc. agreed to merge with Pool Energy Services Co., the companies said Monday.
Nabors Industries Inc. (NBR) and Pool Energy Services Co. (PESC), a diversified energy services company, said both their boards have agreed to a tax-free, stock-for-stock transaction that will be accounted for using the purchase method of accounting.
Pool shareholders will receive 1.025 shares of Nabors common stock for each share of Pool they currently own. The transaction values Pool shares at $16.46 each, based on Nabors' closing price of $16.06 on Jan. 8, and a total value of about $518 million, including $144 million in assumed debt.
The Houston-based companies also said Tuesday's special meeting of Pool shareholders had been canceled.
The combined company will operate about 440 land drilling and rigs internationally, and 60 offshore rigs both domestically and internationally. Combined pre-merger revenue for the 12 months ended Sept. 30, 1998, were $1.6 billion, with operating income of $279 million.
"Pool and Nabors are a good fit," said Eugene Isenberg, chairman and chief executive officer of Nabors. "The combined entity will enjoy a broader geographic presence in land and offshore operations, both domestically and internationally. Likewise, Pool's shareholders will benefit from a much larger exposure to land drilling operations in Canada and the U.S. Lower 48."
Nabors Industries stock was down 3/16 Friday at 16-1/16. Pool Energy Services was down 3/16 at 13-5/8. 
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