The largest driller in Canada Precision Drilling Corp said it is entitled to a $20-million break fee after Ensign Energy Services Inc. announced that it will take control of Trinidad Drilling Ltd. by acquiring a majority of Trinidad’s shares.
Ensign Energy Services, an oilfield services provider based in Calgary, has taken up 56.38 percent of Trinidad Drilling Limited’s shares in a hostile offer.
Following Ensign’s announcement on unsolicited offer to purchase and takeover bid circular, Precision Drilling Corporation terminated its Oct. 5 agreement to acquire Trinidad for $1 billion.
"A payment of the termination fee in the amount of $20,000,000 is now due and payable to Precision in accordance with the Arrangement Agreement," said the statement from Precision Drilling.
Ensign now owns 66.18 percent of Trinidad’s shares. Ensign currently plans to purchase common shares in the market in the ordinary course occasionally at prices not to exceed $1.68 per share, the company said.
Precision informed that it is awaiting the termination fee agreed upon in the company’s arrangement agreement with Trinidad.
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