Shelf Drilling recommends increased ADES cash offer

ADES International Holding has revised its cash offer to acquire Shelf Drilling, increasing the consideration to NOK 18.50 per share. This "Revised Cash Consideration" is a 6% increase in the overall enterprise value and is supported by irrevocable pre-commitments representing 53.4% of outstanding shares, significantly up from the 15.0% initially secured. This 53.4% includes ADES’ existing 17.9% stake and new commitments from shareholders like China Merchants and Anchorage Capital Group.

The decision to increase the offer follows discussions with Shelf Drilling's senior management and considers current trading, jack-up market fundamentals, and an upwardly revised cost synergy estimate of $50-60 million annually. Shelf Drilling's board of directors unanimously recommends the revised merger terms.

The extraordinary general meeting previously scheduled for September 16, 2025, has been indefinitely adjourned. A new meeting is expected on or about October 6, 2025, to seek shareholder approval for the Revised Cash Consideration. The transaction is still anticipated to close in Q4 2025.