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Savanna accepts Western Energy's raised offer, rejects Total Energy's
March 15, 2017 / 1:28 PM / 9 months ago

Savanna accepts Western Energy's raised offer, rejects Total Energy's

(Reuters) - Savanna Energy Services Corp SVY.TO said it accepted a higher offer from fellow Canadian oilfield services provider Western Energy Services (WRG.TO), while again rejecting a hostile bid from Total Energy Services Inc (TOT.TO).

Western Energy’s bid has been revised to include a cash portion of 21 Canadian 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 C$386 million ($287 million), up from about C$348 million earlier.

Total Energy’s current offer stands at 20 Canadian cents in cash and 0.13 per share for each Savanna share held, valuing the company at about C$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.

    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 Corp in the United States.

    Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila

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