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Eurasia Drilling slides on Schlumberger deal delay

20th February 2015

Shares in the London-listed Eurasia Drilling slumped on Friday on the news that the hotly anticipated minority USD 1.7bn acquisition by Schlumberger announced last month

Shares in the London-listed Eurasia Drilling slumped on Friday on the news that the hotly anticipated minority USD 1.7bn acquisition by Schlumberger announced last month
EDC is the largest provider of onshore drilling services in Russia, as measured by the number of metres drilled, providing onshore integrated well construction services and workover services

Eurasia Drilling Company’s share price has dropped over 14 per cent after it announced the delayed transaction between itself and Schlumberger.

“The merger between the company and EDC Acquisition Company Limited (EACL) and the related transaction with SLB [Schlumberger] will only be completed once all conditions precedent set out in the merger agreement dated 20 January 2015 between the Company and EACL have been satisfied, including FAS confirming that SLB and the company have responded to all information requests to FAS's satisfaction and that no further notification to, or review by, FAS is required,” EDC said in its statement.

“As a result, the filing of the plan of merger with the Cayman Islands Registrar of Companies, payment of the Merger consideration to the company's shareholders and by The Bank of New York Mellon (as depositary) to holders of the company's global depositary receipts, and the delisting of the GDRs from the London Stock Exchange, will not occur on the expected dates previously announced by the company.”

EDC is the largest provider of onshore drilling services in Russia, as measured by the number of metres drilled, providing onshore integrated well construction services and workover services.

FAS is the Russian Federal Antimonopoly Service.

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