Precision Drilling to buy Trinidad Drilling in accessible understanding valued during $1B

Two of Canada’s largest oil and gas drillers have concluded to mix in a understanding value about $1.03 billion, positioning them to have a third-largest agreement drilling swift in a United States.

Under a accessible understanding reached by a dual Calgary-based companies, Precision Drilling Corp. will buy Trinidad Drilling Ltd. in sell for shares value about $540 million. Precision will also assume $477 million in debt.

If a understanding closes as expected, Trinidad shareholders will possess about 29 per cent of Precision, that is Canada’s biggest agreement drilling company.

The Trinidad house is unanimously ancillary a Precision offer and rejecting a prior antagonistic takeover bid of $1.68 per share money from Ensign Energy Services Inc., also of Calgary, that was announced on Aug. 30.

However, a transaction requires capitulation from two-thirds of votes expel by Trinidad shareholders and a elementary infancy of Precision shareholders during apart special meetings.

A sum Precision-Trinidad would have some-more than 200 active rigs in a North American swift after a transaction, and 322 sum rigs. Of those, Precision has identified 50 that would be hold for sale.

It projects some-more than $30 million in annual synergies from a combination, by softened corporate potency and trickery consolidations.

Precision shares sealed Thursday during $4.44, creation a offer of 0.445 share value about $1.98 per Trinidad common share. Trinidad shares sealed Thursday during $1.84 per share on a Toronto Stock Exchange.

• MORE ALBERTA NEWS | Green Line trainer creates representation for 1 hovel by downtown Calgary, not 2
• MORE ALBERTA NEWS | Tourist says automobile dweller told her sirocco ‘no problem’ for expostulate to mountains
• Read some-more articles by CBC Calgary, like us on Facebook for updates and allow to our CBC Calgary newsletter for a day’s news during a glance​

Article source: https://www.cbc.ca/news/canada/calgary/canada-oil-and-gas-drillers-deal-1.4851792?cmp=rss