Hercules announces preliminary results of tender offer for Todco

By Lisa Kerner

Charlotte, N.C., July 9 - Hercules Offshore, Inc. said its cash and stock offer for Todco is not oversubscribed, based on preliminary results from the elections that ended on July 5.

As a result, shareholders who made valid merger consideration elections by the deadline should receive the form of merger consideration they elected, with final results to be announced, according to a company news release.

Of the 57,764,927 shares of Todco common stock outstanding on July 5, 15,461,194 shares, or 26.8%, elected to receive cash, and 33,080,861 shares, or 57.3%, chose to receive shares of Hercules common stock. Hercules said it expects to pay a total of $924 million in cash to Todco stockholders and issue about 56.6 million shares of common stock.

The estimated cash consideration is $48.46 per share of Todco common stock, while stock electors are expected to receive about 1.462 shares of Hercules common stock.

Some 6,038,429 shares, or 10.4%, did not make a valid election and will receive an estimated 0.778 shares of Hercules stock and $22.56 cash per share of Todco common stock.

Hercules and Todco expect to complete the merger on July 11. The companies entered into an agreement on March 19.

Houston-based Hercules Offshore operates a fleet of nine jackup oil and gas drilling rigs and 64 liftboats.

Todco, also based in Houston, provides contract oil and gas drilling services.

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