Famatown Finance Limited, a company indirectly controlled by trusts settled by John Fredriksen and a member of The Seatankers Group, has accumulated approximately 5 per cent of the common shares of Valaris Limited.

Valaris, the Bermudian-based offshore drilling services company, made the announcement today, saying that the accumulation was made through open market transactions.

Mr Fredriksen is a Norwegian-born, Cypriot billionaire shipping magnate.

Seatankers is his family’s holding company.

Anton Dibowitz, president and chief executive officer of Valaris, said: “Valaris welcomes the interest and investment from The Seatankers Group, who have extensive offshore drilling knowledge and experience.

“We appreciate the confidence expressed in the Valaris management team and board of directors, and the recognition of Valaris’ compelling value proposition. We look forward to a collaborative and long-term relationship.”

Further to that, Valaris said, it has entered into a support agreement with Famatown, granting board observer rights to a Famatown designee upon the satisfaction of certain conditions specified in the support agreement.

The support agreement also provides Famatown with the potential to designate a member of the Valaris board should Famatown increase its ownership of Valaris shares in an amount that the board deems sufficient.

Valaris said The Seatankers Group has expressed its determination to be a long-term shareholder while working alongside the company as a resource and partner to continue driving long-term value for Valaris shareholders.

Valaris said it looks forward to a continued collaborative relationship.