Schlumberger to spend $1.7bn on minority stake in EDC

Eurasia Drilling Company (EDC)

The US oilfield services firm Schlumberger  has announced that it is to  buy a 45.65% stake in Eurasia Drilling Company (EDC), the largest provider of onshore drilling services in Russia, for $1.7 billion. To effect the acquisition, EDC’s principle shareholders will de-list the company from the London Stock Exchange at which point Sclumberger will buy a minority equity interest at $22 per share, the US company said in a statement today.“The total cost of acquiring this minority interest, including the cost of a call option and various non-competition agreements, is approximately $1.7 bn,” the statement reads.The call option will allow Schlumberger to purchase the remaining shares in EDC during a two-year period commencing three years from the closing of the transaction.” ITAR-TASS