Precision Drilling Trust, Grey Wolf combine in $1.12 billion cash-and-stock deal

By Lisa Kerner

Charlotte, N.C., Dec. 24 - Precision Drilling Trust completed its acquisition of Grey Wolf, Inc. following Grey Wolf shareholders' approval of the merger on Tuesday.

Grey Wolf shareholders could elect to receive $9.02 in cash or 0.4225 Precision Drilling trust units per Grey Wolf share, subject to proration, it was previously reported.

The cash merger elections "substantially" exceeded the amount of cash available for cash elections, Precision Drilling said, based on preliminary election results.

Cash consideration is expected to be prorated to $5.15 in cash and 0.1808 Precision Drilling trust units for each share of Grey Wolf common stock.

Grey Wolf shareholders who elected to receive Precision Drilling trust units or who failed to make a valid election are expected to receive 0.4225 Precision Drilling trust units per share of Grey Wolf common stock.

Precision Drilling, a Calgary, Alta., oil and gas drilling and exploration company, said it will pay a maximum of about $1.12 billion in cash and roughly 42 million Precision Drilling trust units.

Houston-based Grey Wolf is the fourth-largest provider of contract land-drilling services in the United States.

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