Precision Drilling to acquire Trinidad Drilling in $796m dealStaff Writer | October 8, 2018
Precision Drilling Corporation announced that it has entered into an arrangement agreement with Trinidad Drilling Limited pursuant to which Precision has agreed to acquire all of the issued and outstanding common shares of Trinidad on the basis of 0.445 common shares of Precision for each outstanding Trinidad.
Acquisition The aggregate transaction value is approximately $1,028 million
Upon completion of the transaction, existing holders of Trinidad Shares will collectively own approximately 29% of Precision.
Trinidad’s fleet of 141 drilling rigs includes 61 high spec AC rigs that fit 90% within Precision’s standardization protocols and are equipped with major components that are well aligned for fleet integration.
Precision will have a North American fleet that includes over 200 active rigs and 322 total rigs.
As the third largest driller in the U.S., Precision will have strong positions in all key shale plays and will be positioned for improving industry activity. The company will have an expanded platform for technology deployment and an increased inventory of economically upgradeable rigs.
The company will have improved cash flow generation capabilities in Canada given excellent fixed cost leverage and operating synergies.
Trinidad’s customer mix and rig fleet is complementary and the company is well positioned for LNG and Deep Basin development. Precision has identified 50 rigs from the combined fleet that it intends to hold as assets for sale. ■