On March 25th, Total Energy Services Inc. (“Total Energy”) announced that under its offer (the “Offer”) for the common shares of Savanna Energy Services Corp. (“Savanna”), it acquired a majority of the outstanding common shares of Savanna (“Savanna Shares”). Total Energy also announced that it has extended the Offer. The Offer is now scheduled to expire at 12:00 PM (Pacific time) on April 7, 2017. Under the terms of the Offer, holders of Savanna Shares who accept the Offer will receive 0.13 of a common share of Total Energy plus $0.20 of cash in exchange for each Savanna Share acquired by Total Energy.
Savanna shareholders who have not yet tendered to Total Energy’s offer to purchase the outstanding common shares of Savanna (the “Total Offer”) are encouraged to deposit their Savanna common shares under the Total Offer as soon as possible. If Savanna shareholders have any questions regarding the Total Offer or how to tender their Savanna common shares, they should contact Laurel Hill Advisory Group (“Laurel Hill”) at 1-877-452-7184 (Toll Free in North America) or 1- 416-304-0211 (Collect Outside North America) or by email at email@example.com.
Benefits of the Offer:
- Total Energy has a consistent track record of providing its shareholders with industry leading returns. Total Energy has managed this shareholder value creation with minimal use of debt and currently has significant financial flexibility to complete the acquisition of Savanna.
- The consideration offered by Total Energy includes shares of Total Energy, which provides Savanna shareholders with exposure to an eventual industry recovery, and $0.20 cash per Savanna Share, which provides immediate liquidity and a measure of certainty of value.
- Total Energy is now the majority shareholder of Savanna.
- The combination of Total Energy and Savanna will result in a diversified, financially solid energy services company with a strong market position in four business segments: Contract Drilling Services; Rentals and Transportation Services; Well Servicing and Compression and Process Services. With a leading market presence in Canada and growing international operations, particularly in the United States and Australia where each of Total Energy and Savanna currently conduct business, Total Energy expects that it will be well positioned to continue to provide its shareholders with industry leading returns on their equity following completion of the acquisition of Savanna.
- Total Energy has maintained its dividend throughout the current downturn.
Full details of the Offer are contained in the offer to purchase and associated take-over bid circular, dated December 9, 2016, as amended, varied and supplemented by the Notice of Change and Variation dated March 1, 2017, the Notice of Variation dated March 13, 2017 and the Notice of Extension dated March 27, 2017. These documents are available on this website (click Offer Materials under the Navigation heading) as well as at www.sedar.com (under Savanna’s profile).