Oklahoma City-based Seventy Seven Energy Inc., the spinoff company from Chesapeake Energy is moving closer to its announced merger with Patterson-UTI Energy Inc, of Houston.
The company said it has established a record date for the special meeting of its stockholders to consider and vote upon the merger. The merger was announced in December 2016. Those stockholders of SSE at the close of business Feb. 22, 2017 will receive a notice of the special meeting and to vote at the meeting.
Under the deal, Patterson-UTI will acquire Seventy Seven Energy in an all-stock transaction. Patterson quill acquire all of the issued and outstanding shares of common stock of Seventy Seven Energy in exchange for nearly 49.6 million shares of common stock of Patterson Energy UTI.
So far, the boards and directors of both companies have unanimously okayed the merger. Patterson-UT also entered into a voting agreement with three shareholders of Seventy Seven Energy including BlueMountain Capital Management, Axar Capital Management and Mudrick Capital Management who represent more than 50% of the outstanding shares of common stock of Seventy Seven Energy.