The market may be hitting new highs, but there are some concerns about the future. Additionally, not every sector has benefited equally from the climb, at least according to Noble Corp (NE). The company’s Chairman/President/CEO David Williams blamed ‘financial market conditions, both generally and with respect to the equity markets for offshore drilling companies’ for the decision to scrap its planned IPO of up to 20% of its standard spec drilling spinoff Paragon Offshore.
Paragon will now be distributed as a dividend to shareholders in one shot sometime during Q3 this year. Interestingly, the spinoff is actually subject to a shareholder vote which will take place at an upcoming shareholder meeting. A Form 10 filing is expected to be filed sometime soon and we will keep you updated as more information is released. In the meantime, check out all of our earlier coverage of the situation.
Disclosure: Author holds no position in any stock mentioned.