W. Matt Ralls, President and Chief Executive Officer, commented, "The offshore drilling industry is a global business and we have been evolving into a much more geographically diversified company. With this change in our structure, we formally recognize that the base of operations we first established in the U.K. more than three decades ago is now a central and efficient location from which we manage the markets that will be our largest source of revenue this year. The changes we are making will increase shareholder value over time by improving our competitiveness as a global contract driller and by giving us greater flexibility to manage our global operations. Our industry has already moved in this direction, and over the long term, by making the Company even more competitive, we can grow and reinvest in our business, leading to the creation of more high-paying jobs both in the U.S. and in the other markets we serve."In order to put in place the change in corporate structure, the plan provides that the Company would consummate a merger with one of its subsidiaries. As a result of the merger, all common stock of the Company – including shares granted under the Company's equity based incentive plans -- will be exchanged for American depositary shares ("ADS") of its new U.K. parent company – a newly formed English public limited company to be named "Rowan Companies plc" ("Rowan UK"). ADS will represent Class A Ordinary Shares of Rowan UK. Upon completion of the merger, Rowan's business and operations will continue in substantially the same manner except that Rowan UK will be the parent company of the Rowan group of companies. Rowan will submit an application to the New York Stock Exchange ("NYSE") and anticipates that, immediately following the effective time of the merger, the ADS will be listed on the NYSE under the symbol "RDC," the current symbol for Rowan Delaware common stock. The plan is subject to stockholder approval and other conditions, including receipt of applicable consents and approvals. The Company currently anticipates that it will complete the proposed change in corporate structure by late spring.
Rowan Announces Proposed Change In Corporate Structure
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