Nabors Industries, Inc. announced that its stockholders overwhelmingly approved a proposal that will result in Nabors Industries changing its place of incorporation from Delaware to Bermuda. Of the outstanding shares, 65.6% were for the proposal, far exceeding the majority of the outstanding shares required for the proposal to pass. More than 80% of the shares voted were in favor of the reorganization.
Nabors also announced that the U.S. District Court for the Southern District of Texas has denied the request by plaintiffs that a temporary restraining order be issued against Nabors in connection with the stockholder vote and the proposed reorganization. The Court's opinion is expected on Friday.
Nabors' Chairman and Chief Executive Officer Eugene Isenberg said, "We are delighted with the outcome of today's vote and the Court's decision. Our stockholders' confidence in the strategic direction of our Company has been demonstrated. Our stockholders have clearly agreed with us that this reorganization is an excellent way to help to facilitate growth and enhance value. We look forward to reviewing the Court's opinion when it is issued."
As a result of today's vote, Nabors Industries, Inc. will become a wholly- owned, indirect subsidiary of Nabors Industries Ltd. The Company expects the reincorporation to be effective as soon as possible. Upon completion, each share of Nabors Industries, Inc. will automatically be converted into the right to receive a share of Nabors Industries, Ltd. and all current stockholders of Nabors industries, Inc. will become shareholders of Nabors Industries Ltd. The new shares will be listed and traded on the American Stock Exchange under the ticker symbol "NBR." When the reincorporation is effective a Nabors transfer agent will mail stockholders a letter of transmittal and instructions for the exchange of their current stock certificates into shares of the Bermuda corporation.
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969