Mexico's Cicsa To Buy 60% Of Bronco Drilling Unit For $30 Million
September 21 2009 - 10:36AM
Dow Jones News
Mexican construction concern Cicsa (CICSA.MX) said Monday that
it has agreed to buy a 60% stake in the local unit of Bronco
Drilling Company Inc. (BRNC) to expand its oil services
activities.
Cicsa, a unit of conglomerate Grupo Carso (GPOVY) controlled by
Mexican billionaire Carlos Slim, said in a filing with the Mexican
Stock Exchange that it also will acquire from Grupo Financiero
Inbursa (GFINBUR.MX) an option to buy 5.44 million Bronco Drilling
shares.
Bronco Drilling said in a separate release that it obtained a
$75 million revolving credit facility with Inbursa, which it's
using to pay off existing debt and for working capital.
Under the credit agreements, Bronco issued to Inbursa three-year
warrants for up to 5.44 million Bronco shares. Inbursa also is
controlled by Slim.
The joint venture, Bronco Drilling MX, will provide oil and gas
drilling services in Mexico and Latin America.
It has six drilling rigs, ancillary equipment, and profits from
two current drilling contracts with Mexican state oil monopoly
Petroleos Mexicanos, Bronco said. The company said it will
contribute three more rigs to the joint venture when those
contracts are completed.
Cicsa B-1 shares trading on the Mexican stock market were up
3.9% at 6.94 pesos ($0.52) at about 9:50 a.m. EDT. Bronco shares
were recently up 2 cents at $5.88.
-By Anthony Harrup, Dow Jones Newswires; (5255) 5001 5727,
anthony.harrup@dowjones.com