Short and sweet—-Basic Energy Services Inc.’s rejection of a merger proposal from Key Energy Services Inc. based in Houston.
The Fort Worth company announced its Board of Directors unanimously voted against the merger offer made this week by Key Energy. Key made the unsolicited proposal to combine with Basic Energy in a stock-for-stock transaction.
In a statement, Basic Energy said after a careful review, conducted in consultation with its advisors, the Company’s Board of Directors unanimously concluded that the proposal is not in the best interests of Basic and its stockholders.
Below is the text of a letter that was sent today by Tim Day, Chairman of the Board of Basic, to Robert J. Saltiel, President and Chief Executive Officer of Key.
September 24, 2018
Mr. Robert J. Saltiel
President and Chief Executive Officer
1301 McKinney
Suite 1800
Houston, Texas 77010
Dear Mr. Saltiel:
This letter is in response to your letters dated September 20, 2018 and September 23, 2018 indicating Key Energy Services’interest in combining with the company. I have shared the correspondence with the company’s board, and the board has discussed it. The company will continue to pursue its independent strategy to maximize stockholder value and is not interested in pursuing the proposed transaction.
Sincerely,
Timothy Day
Chairman, Basic Energy Services, Inc.