HSR waiting period ends early in Grey Wolf, Basic Energy Services merger of equals

By Lisa Kerner

Charlotte, N.C., June 9 - The Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed merger of Grey Wolf, Inc. and Basic Energy Services, Inc., it was announced on Monday.

In April, the boards of directors of Grey Wolf and Basic Energy Services approved a definitive agreement to combine the two companies in a merger of equals.

The agreement calls for Grey Wolf shareholders to receive $1.82 in cash and 0.25 of a share of new Grey Wolf common stock for each share of Grey Wolf they currently own or, based on the exchange ratio, one share of new Grey Wolf for each four shares of Grey Wolf held in addition to the cash consideration.

Basic Energy Services shareholders will receive $6.70 in cash and 0.9195 of a share of new Grey Wolf for each share of Basic Energy Services they currently own, a prior news release stated.

It was previously reported that the total estimated enterprise value of the combined company will be $2.9 billion, based on closing prices for each company's common stock on April 18.

The combined company, Grey Wolf, Inc., will be based in Houston. It will trade on the New York Stock Exchange under the symbol "GW."

Basic Energy Services is the third-largest well servicing rig contractor in the United States. The company is located in Midland, Texas.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.