KCA Deutag - comment

At long last, legacy creditor shareholders got some good news with US oil services strategic and peer, Helmerich & Payne yesterday (Thursday) announced a definitive agreement to acquire KCA Deutag for $1.975bn in cash.  This equates to c. 4.85x LTM EBITDA and c. $100 a share.  The transaction is expected to close before year-end subject to customary closing conditions and regulatory approvals.  This will end our happy involvement in KCA Deutag, having followed the name since August 2019 and taking a position before the restructuring in July 2020.  We will expect significant high fives on the next earnings call.