Well services companies Trican, Canyon to combine in $637M friendly deal

Well services companies Trican, Canyon to combine in $637M friendly deal


Published on: March 22, 2017 | Last Updated: March 22, 2017 9:27 AM MDT


Trican chief executive Dale Dusterhoft COLLEEN DE NEVE / CALGARY HERALD


Two Calgary-based companies that provide services to the oil and gas industry are planning to combine forces through an exchange of shares and debt valued at $637 million.

Trican Well Service Ltd. (TSX:TCW) would exchange 1.7 of its common shares for each share of Canyon Services Group Inc. under the friendly deal, which is supported by the boards of both companies.

Both companies say the offer is worth $6.63 per Canyon share, based on Trican’s stock price at the end of trading on Tuesday.

Trican would also assume $40 million of Canyon’s debt.

Canyon’s shareholders would end up with 44 per cent of the combined company’s equity, with the rest going to Trican shareholders.

The proposed transaction requires approval by at least two-thirds of votes cast by Canyon shareholders at a meeting and by a simple majority of votes cast by Trican shareholders.



About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on March 23, 2017, in oil. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: