Just a few weeks ago, it appeared that Precision Drilling’s friendly deal to acquire Trinidad Drilling would trump the hostile bid launched by Ensign Energy Services.
Fast forward to today, including a “very astute move” on the part of Ensign last week, and the smaller company has effectively completed its Trinidad acquisition.
Here are seven facts about the deal and how it positions Ensign for the future, from analysts with Peters & Co. Limited.
- As of November 29, 56.4 percent of Trinidad’s shares have been tendered to Ensign, with the company now controlling 66.2 percent of the outstanding shares.
- The tender offer has been extended to December 10 and the transaction is expected to be completed by year-end.
- Ensign has replaced Trinidad’s board of directors and executive and is expected to immediately begin the integration of the two companies.
- The acquisition doubles Ensign’s U.S. contract drilling market share;
- increases the company’s exposure to the Permian Basin; and
- establishes it as the second most active driller in Canada and expands its international fleet and exposure to the Middle East.
- Total consideration paid is approximately $920 million in cash and debt.