Rowan to sell its land drilling business to subsidiary of Ensign Energy Services in deal worth US$510M, plus US$30M in working capital

NEW YORK , July 22, 2011 () – Rowan is selling its land drilling business to a subsidiary of Ensign Energy Services Inc. in a deal worth $510 million, plus about $30 million in working capital.

Rowan, based in Houston, said Wednesday that the sale is part of its strategy to shed non-core businesses. Proceeds from the sale will be invested in offshore drilling.

The deal is subject to regulatory approval, which Rowan expects to receive within 60 days.

Shares of Rowan Companies Inc. ( RDC - news - people ) rose 95 cents, about 2.5 percent, to $38.51 in morning trading. Ensign shares added 36 cents, nearly 2 percent, to $19.75.

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