Shallow-water offshore drilling services provider Shelf Drilling’s shareholders have given the green light for a cash merger with Saudi Arabian company ADES.

Shelf convened an extraordinary general meeting to review the proposed merger. Every item on the agenda passed with the required majority, with 99.6% of votes cast in favour of the merger.

In August, ADES International Holding, a unit of drilling services company ADES Holding, agreed to take over all issued and outstanding shares of Shelf Drilling through a cash merger.

The Nkr14 ($1.40) price for each Shelf Drilling share under the August agreement implied a total company equity valuation of roughly $380m.

However, in September, ADES Holding announced the revised terms for its proposed merger with Shelf Drilling, increasing the cash consideration by 28% to Nkr18.50 per share.  

This revision came after discussions with Shelf Drilling’s senior management and a review of market fundamentals. 

In a statement to Tadawul in September, ADES Holding stated that the revised offer garnered binding commitments, including ADES’ own share, which accounted for 53.4% of the votes in favour of the merger.  

Shelf Drilling’s board also unanimously recommended this revised offer.  

In the latest statement to Tadawul, ADES said that the completion of the merger remains subject to customary closing conditions and other regulatory approvals.

The transaction timetable remains unchanged, with closing expected in the fourth quarter of 2025. 

Shelf Drilling, which is incorporated under the laws of the Cayman Islands and has headquarters in Dubai, operates a fleet of 33 jack-up rigs, active across South East Asia, India, West Africa, the North Sea, and the Middle East, North Africa and Mediterranean region.

ADES has roughly 50 jack-up rigs and 40 land rigs, with operations spanning seven countries.

Post deal completion, Shelf Drilling will remain the surviving entity.