Ensign Energy Services, which is planning to take over Canada-based Trinidad Drilling, has acquired an additional stake of 56.38% in the latter at $1.68 per share.
In August 2018, the Canadian oilfield services provider offered to take full ownership of Trinidad Drilling in a deal valued at C$947m ($720.26m), which included assumption of $477m in outstanding net debt.
The company said that the tendered shares have helped in satisfying the statutory minimum condition for its offer.
Ensign Energy already held a stake of 9.8% prior to launching the take-over bid.
With an intent to acquire the remaining stake of around 33.82%, Ensign Energy said that the shareholders, who are yet to tender their shares in Trinidad Drilling, can do so by 10 December 2018.
The company, in a statement, said: “Ensign currently intends to purchase Common Shares in the market in the ordinary course from time to time at prices not exceeding $1.68 per share in accordance with the Offer and applicable securities laws.”
In February 2018, Trinidad Drilling started a strategic review process under which it had evaluated various alternatives, including a sale of select assets and a corporate transaction. The company is engaged in providing drilling and well services to the North American oil and gas industry.
In October, Precision Drilling signed an agreement to acquire Trinidad Drilling in a transaction worth C$1.03bn ($796m), which included assumption of around $367m debt. The board of Trinidad Drilling had also approved the offer from Precision Drilling while rejecting the takeover proposal from Ensign Energy.
However, with Ensign Energy capturing a majority stake in the company, Precision Drilling has terminated its arrangement agreement signed in early October. Precision Drilling is now seeking $20m from Trinidad Drilling as a termination fee.
Trinidad Drilling, in a statement, said: “Subsequent to such termination, Trinidad and Ensign reached agreement that the Trinidad board of directors would serially resign and appoint five Ensign nominees to Trinidad’s board.
“Accordingly, the current board of directors has resigned and has been replaced by five nominees of Ensign who are currently members of the Ensign board.”