NEW YORK (TheStreet) -- Shares of Seadrill Ltd (SDRL) are sinking, down 8.04% to $20.47 in early market trading Tuesday, after the company announced earlier today that it is selling drill ship West Vela for $900 million to Seadrill Partners (SDLP) .
Seadrill Partners owned subsidiary, Seadrill Capricorn Holdings LLC will acquire all of the ownership interests in the entities that own and operate West Vela.
The implied purchase price of acquisition is $900 million, less $433 million of debt outstanding.
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The deal is expected to close within three days, and will be accomplished through a series of purchases, contributions and assumption of debt.
Seadrill Partners stock is also down 3.52% to $23.58 today.
Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEADRILL LTD (SDRL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."