By The Canadian Press

Precision Drilling to buy Trinidad Drilling in friendly deal valued at $1 billion

Oct 5, 2018 | 6:20 AM

CALGARY- Trinidad Drilling shares rose to their highest level in nearly six months on Friday after Precision Drilling came to its rescue with a friendly takeover offer valued at $1.03 billion, including assumed debt.

Trinidad’s shares, which had plunged during the summer prior to a hostile takeover offer from Ensign Energy Services in August, gained 12 cents or 6.5 per cent to $1.96, shortly after the Toronto Stock Exchange opened.

Precision Drilling shares were at $4.40, down four cents from Thursday’s close, and Ensign’s fell five per cent or 29 cents to $6.06 per share.

Under a friendly deal announced before markets opened, Trinidad shareholders would receive 0.445 of a Precision Drilling share for each share and collectively own 29 per cent of Precision’s common equity. Precision would also assume $477 million in debt.

Based on $4.40 per share as of early Friday, the offer would be worth about $1.96 per Trinidad share although the value will fluctuate until the deal closes.

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The offer was worth $1.98 per share based on Thursday’s closing price.

Ensign’s offer of $1.68 cash, announced on Aug. 30, was previously rejected by Trinidad’s board.

(The Canadian Press)