Amended agreement gives Bronco Drilling shareholders $18.25 per share in deal with Allis-Chalmers

By Lisa Kerner

Charlotte, N.C., June 2 - The boards of directors of Allis-Chalmers Energy Inc. and Bronco Drilling Co., Inc. approved an amended merger agreement between the two companies, a Bronco Drilling news release stated.

Bronco Drilling stockholders will receive total merger consideration of $200.0 million in cash and 16,846,500 shares of Allis-Chalmers common stock, or $18.25 per share.

On Jan. 24, Allis-Chalmers agreed to acquire Bronco Drilling in a cash and stock deal valued at $437.8 million, or $16.33 per share, consisting of $280.0 million in cash and Allis-Chalmers common stock valued at $157.8 million.

According to the release, once the merger is complete, Allis-Chalmers' and Bronco Drilling's stockholders will own approximately 68% and 32%, respectively, of the combined company.

Closing of the transaction is subject to approval by shareholders of both companies, Bronco Drilling said.

Houston-based Allis-Chalmers provides services and equipment to oil and natural gas exploration and development companies.

Bronco Drilling, located in Edmond, Okla., provides contract land drilling and workover services to oil and gas exploration companies.

© 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.