Ensign Energy Services launches $947mn takeover bid for Trinidad Drilling
The Canada-based firm, Ensign Energy Services, has confirmed it will launch a $947mn takeover offer for Trinidad Drilling which has caused the oil and gas company’s shares to surge nearly 15%, Financial Post reports.
Following Trinidad’s announcement that it would abandon a strategic review that included a corporate sale or asset sales to decrease debt and encourage investors, Ensign attempted to discuss a potential deal after Trinidad ended its review on 1 August.
Ensign revealed that the board had unacceptable conditions and were unable to agree a deal, but, on Monday (13 August) Trinidad confirmed that the firm has created a special committee to inspect Ensign’s bid through the use of hired advisors in order to offer advice to its shareholders.
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Ensign’s statement reads: “We strongly believe that the Trinidad board and management of Trinidad, as fiduciaries of the company, should have engaged with Ensign, without a standstill, to pursue an attractive opportunity to surface shareholder value.”
“The Trinidad board’s failure to fully engage with Ensign has led us to bring the offer directly to you, the shareholders and true owners of the company.”
It is anticipated that the estimated total value of the takeover is approximately $947mn which also includes Trinidad’s expected net debt of $477mn as of 30 June.
Ensign currently owns 9.8% of Trinidad’s shares.