Precision Drilling Trumps Ensign Bid For Peer Trinidad

Canada’s Precision Drilling Corp. (NYSE: PDS) said Oct. 5 it would buy smaller rival Trinidad Drilling Ltd. in a deal valued at C$1.03 billion (US$796 million), trumping a hostile bid from Ensign Energy Services Inc.

Trinidad’s board in August rejected a C$1.68 per share all-cash bid from oilfield services provider Ensign. That compared to Precision’s all-stock offer for Trinidad of C$1.98 per share based on the bidder’s closing price on Oct. 4.

Trinidad, which ended a strategic review in August by making changes to its board but stopping short of a sale, said Oct. 5 that Precision’s offer is superior to Ensign’s and reiterated that shareholders reject the unsolicited offer.