Savanna Energy Services Corp. said Dec. 15 it had received interest from other potential bidders after fellow oilfield services provider Total Energy Services Inc. went hostile with its offer to buy the company.
Calgary, Alberta-based Savanna, whose shares rose as much as 10.5% to C$2 in morning trading, said it would explore strategic alternatives early next year.
Total Energy first made a proposal to buy Savanna in November, offering 0.1132 of its shares for each Savanna share.
Total Energy, which is also based in Calgary, raised its offer to 0.1300 of its shares earlier this month and took it directly to Savanna's shareholders. Savanna said Dec. 12 it would review the latest unsolicited bid.
Savanna Energy had a market value of about C$190 million (US$143 million) as of close on Dec. 14, while Total Energy was valued at about C$435 million.
A more than 50% fall in oil prices since mid-2014 eroded demand for services provided by oilfield companies, setting off a wave of consolidation.
U.S. driller Patterson-UTI Energy Inc. (NASDAQ: PTEN) said Dec. 12 it would buy Seventy Seven Energy Inc. in an all-stock deal worth US$1.76 billion including debt.
Up to close Dec. 14, Savanna's stock had risen 23% since Total Energy's initial bid. (US$1 = C$1.332)
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