Savanna Energy Services Corp said it accepted a higher offer from fellow Canadian oilfield services provider Western Energy Services Corp, while again rejecting a hostile bid from Total Energy Services Inc.
Western Energy’s bid has been revised to include a cash portion of 21 cents per share, in addition to the original offer of 0.85 Western Energy’s stock for each share held, Savanna said on Wednesday.
The new offer values Savanna at about $386 million (US$287 million), up from about $348 million earlier.
Total Energy’s current offer stands at 20 cents in cash and 0.13 per share for each Savanna share held, valuing the company at about $225 million.
The company first offered 0.1132 of its shares in November, before raising the bid and taking it directly to Savanna’s shareholders in December.
Savanna had then rejected Total Energy’s offer, saying it “significantly” undervalued the shares of the company.
Calgary-based Savanna provides oil and gas exploration and well preparation and well maintenance services across Alberta, Saskatchewan, British Columbia and Manitoba. It also operates in Canada, the United States and Australia.
Western Energy provides contract drilling services through Horizon Drilling in Canada and Stoneham Drilling in the United States.
Update: Late in 2016, Alberta Investment Management Corp agreed to provide Savanna with about $219 million in debt and equity financing.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Savanna Energy Services Corp