Dan,
The agreed takeover price, $6.50, is almost $2.00 below the 12 month high. Any thoughts on a higher bid coming along or on the success of the legal action against the Board of Directors? Thanks.
UDRL
Re: UDRL
Note from BMO:
Union Drilling (UDRL-Q) – US$6.47, up US$0.34 – Analyst – Michael Mazar – Market Perform – TP-US$6.50, down US$0.50 - Union Drilling and Sidewinder Drilling have announced that privately held Sidewinder has agreed to acquire Union for US$242 million (including debt) or US$6.50/share in an all-cash transaction. While the purchase price represents a discount to Michael’s estimated equipment replacement value of roughly US$12.50/share, he does not envision another buyer emerging and believes that the transaction will ultimately close as currently proposed. Union’s shares are up nearly 70% since early August and thus the purchase price reflects only a modest premium of 6% to the closing price before the announcement. Based on his 2013 EBITDA estimate of approximately US$57 million, the purchase price represents a multiple of 3.8x, a small premium to Union’s small-to-mid-cap US land drilling peers and a slight discount to the small-cap Canadian land drilling group average. Union’s board has unanimously approved of the deal, which is expected to close in Q4/12.
Union Drilling (UDRL-Q) – US$6.47, up US$0.34 – Analyst – Michael Mazar – Market Perform – TP-US$6.50, down US$0.50 - Union Drilling and Sidewinder Drilling have announced that privately held Sidewinder has agreed to acquire Union for US$242 million (including debt) or US$6.50/share in an all-cash transaction. While the purchase price represents a discount to Michael’s estimated equipment replacement value of roughly US$12.50/share, he does not envision another buyer emerging and believes that the transaction will ultimately close as currently proposed. Union’s shares are up nearly 70% since early August and thus the purchase price reflects only a modest premium of 6% to the closing price before the announcement. Based on his 2013 EBITDA estimate of approximately US$57 million, the purchase price represents a multiple of 3.8x, a small premium to Union’s small-to-mid-cap US land drilling peers and a slight discount to the small-cap Canadian land drilling group average. Union’s board has unanimously approved of the deal, which is expected to close in Q4/12.