Grey Wolf, Inc. and Basic Energy Services, Inc. Agree to Combine in ''Merger of Equals'' Transaction
biz.yahoo.com
Grey Wolf, Inc. ("Grey Wolf") (AMEX:GW) and Basic Energy Services, Inc. ("Basic Energy Services") (NYSE:BAS) today announced that their Boards of Directors have approved a definitive agreement to combine the two businesses in a “merger of equals”. Based upon closing prices for each company's common stock as of April 18, 2008, the estimated enterprise value of the combined company would be approximately $2.9 billion. The combined company will be named Grey Wolf, Inc., have its corporate offices in Houston, establish incorporation in the state of Delaware and trade on the New York Stock Exchange under the symbol “GW”.
Under the terms of the agreement, Grey Wolf shareholders will receive $1.82 in cash and 0.2500 shares of new Grey Wolf for each share of Grey Wolf they currently own. Based on this exchange ratio, each stockholder of Grey Wolf will receive one share of new Grey Wolf for each four shares of Grey Wolf in addition to the cash consideration. Basic Energy Services shareholders will receive $6.70 in cash and 0.9195 shares of new Grey Wolf for each share of Basic Energy Services they currently own. |
