May 30, 2012 / 10:13 PM / 5 years ago

UPDATE 1-National Oilwell Varco to buy CE Franklin for C$240 mln

May 30 (Reuters) - Oilfield production equipment distributor CE Franklin Ltd said it will be bought by National Oilwell Varco Inc for about C$240 million ($233.08 million) in cash as the U.S. oilfield equipment maker expands its footprint.

CE Franklin shareholders will receive C$12.75 for every share they held, a 36 percent premium to the stock’s closing price of C$9.35 on Wednesday on the Toronto Stock Exchange.

CE Franklin has agreed to pay a termination fee of C$7.5 million if it accepts a superior offer. The company also said it would not solicit other proposals.

CE Franklin’s largest shareholder, Schlumberger NV, has agreed to vote for the buyout.

The deal is the second one between Schlumberger and National Oilwell in as many months. The world’s largest oilfield services company last month sold its piping and fitting unit to National for an undisclosed amount.

The acquisition marks the end of CE Franklin’s strategic review process and effectively terminates the shareholder’s rights plan it adopted in April.

CE Franklin, which has a market value of about C$176 million, closed at C$9.35 on Wednesday on the Toronto Stock Exchange. National Oilwell, valued at about $30 billion, closed at $67.19 on the New York Stock Exchange.

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