* Cash-and-stock deal valued at about C$193.7 mln including
* IROC to get equivalent of C$3.10/share, a premium of 31
Feb 22 Western Energy Services Corp,
owner of the sixth-largest fleet of drilling rigs in Canada,
will buy IROC Energy Services Corp for about C$157
million ($154 million) to add rigs used in maintaining oil and
IROC's 51 well-servicing rigs operate mainly in Western
Canada's oil-rich shale fields, which is likely to benefit
Western Energy as oil wells need more maintenance than gas
Western Energy, which had 49 drilling rigs and seven newly
built service rigs as of December, will also gain an entry into
the oilfield equipment rental business.
"All of IROC well-servicing rigs are ideally suited for the
continued demand for workover services as a result of the number
of producing oil wells," Western Energy said in a statement on
The deal, valued at about C$193.7 million including debt, is
Western Energy's second-largest acquisition.
The Calgary-based company will pay IROC an equivalent of
C$3.10 per share in cash and stock, a premium of 31 percent to
IROC's closing price on Thursday.
Western Energy, whose customers include Apache Corp,
Imperial Oil Ltd and Husky Energy Inc, said
IROC has agreed not to solicit or initiate talks regarding any
rival bid. The deal is expected to close by April 30.
Raymond James advised Western Energy, while AltaCorp Capital
Inc advised IROC.
Shares of Western Energy, which has a market capitalization
of about C$473 million, closed at C$7.92 on Thursday on the
Toronto Stock Exchange.