BOSTON (Thomson Financial) - Allis-Chalmers Energy Inc. Thursday said it has
entered into a definite agreement to acquire Bronco Drilling Company Inc. for
about $437.8 million in a combination of cash and stock.
Under the terms of the agreement, Bronco Drilling shareholders will receive
$280 million in cash and $157.8 million in Allis-Chalmers common stock.
Allis-Chalmers said the offer values Bronco Drilling shares at $16.33 each,
a 21.8% premium to the closing price Wednesday.
Allis-Chalmers said the merger will result in a combined company with an
implied enterprise value of about $1.4 billion.
Upon completion of the transaction, which is expected to occur in mid-2008,
Allis-Chalmers' stockholders will own about 72.1% and Bronco Drilling
stockholders will own the remaining 27.9% of the combined company.
Shares of Houston-based Allis-Chalmers Energy, a multi-faceted oilfield
company, closed Wednesday at $10.80.
Shares of Bronco Drilling, an Edmond, Okla.-based provider of contract land
drilling and work-over services, closed at $13.42.
Casey Logan
cl/vj
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