CALGARY — Two Calgary-based companies that provide services to the oil and gas industry are planning to combine forces through an exchange of shares and debt valued at $637 million.
Trican Well Service Ltd. (TSX:TCW) would exchange 1.7 of its common shares for each share of Canyon Services Group Inc. (TSX:FRC) under the friendly deal, which is supported by the boards of both companies.
Both companies say the offer is worth $6.63 per Canyon share, based on Trican's stock price at the end of trading on Tuesday.
Trican would also assume $40 million of Canyon's debt.
Canyon's shareholders would end up with 44 per cent of the combined company's equity, with the rest going to Trican shareholders.
The proposed transaction requires approval by at least two-thirds of votes cast by Canyon shareholders at a meeting and by a simple majority of votes cast by Trican shareholders.
The Canadian Press