Saxon Signs Agreement with Sword Canada
Sword Canada Acquisition Corporation will acquire the oilfield services company for Cdn$7.00 per share.
May 6, 2008
Saxon Energy Services Inc., a Calgary-based oilfield services company, has signed an arrangement agreement with Sword Canada Acquisition Corporation.
Sword Canada is an acquisition company owned jointly by Schlumberger Limited and investment funds affiliated with First Reserve Corporation.
According to the terms of the agreement, members of Saxon's management team will receive an equity position in the company. In addition, Sword will acquire all other issued and outstanding common shares of Saxon for C$7.00 per share.
The agreement is subject to shareholder and regulatory approval. In addition, Sword has the right to match any competing proposal for Saxon.
Transaction negotiations were supervised by a independent special committee compiled by Saxon’s board of directors, and was unanimously approved by the board based on the unanimous recommendation of the special committee.
Thomas Weisel Partners Canada Inc. provided Saxon with a fairness opinion
Schlumberger is an oilfield service company with 2007 revenue of U.S. $23.28 billion.
Saxon Q1 08 results were released last week, in which the company reported $72.2 million in revenue and net earnings of $5.1 million, a $17.3 million increase from the first quarter of 2007. Saxon provides oil and gas drilling and workover business services to oil and gas companies in North and South America.
Saxon and Schlumberger are partners in drilling joint ventures in Mexico and Columbia.
First Reserve is one of the world's leading private equity firms focusing on the energy industry. The company as awarded Mergers & Acquisition’s 2007 energy deal of the year for its sale of Ohmstede Ltd.
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