Savanna Energy to open books to potential suitors: Reuters

Canadian oilfield services provider Savanna Energy Services Corp said on Tuesday it would open its books this week to potential suitors interested in a deal with the company.

Savanna said it also planned to explore strategic alternatives, which may include a sale of the company among other options.

The company had rejected an unsolicited acquisition offer from Total Energy Services Inc in December as it “significantly” undervalued the shares of the company.

Calgary-based Savanna, which said it was receiving interests from bidders, reiterated its recommendation to shareholders to reject the offer from Total.

Total refuted Savanna’s assertion, saying Savanna chose to pursue a “highly dilutive” refinancing deal rather than engage with the company despite the encouragement of several large Savanna shareholders to do so.

Update: In November 2016, Canadian pension fund manager Alberta Investment Management Corp (AIMCo) agreed to provide Savanna with about $219 million in debt and equity financing.

(Reporting by Komal Khettry in Bengaluru; Editing by Savio D’Souza and Shounak Dasgupta)

Photo courtesy of Savanna Energy Services Corp