Calfrac Well Services Ltd. shareholders in Calgary have spurned a takeover offer from Texas-based Wilks Brothers LLC at a contentious meeting where the sparring sides put forward two different plans for the heavily indebted fracking company.Financial Post reported that shareholders owning more than two-thirds of the company’s stock voted in favour of a recapitalization plan under the Canada Business Corporations Act put forward by the company’s management. As a result, Cisco, Tex.-based Wilks Brothers is expected to withdraw its unsolicited takeover bid for the company.
Earlier Friday, Calfrac’s creditors voted overwhelmingly in favour of the recapitalization deal.
“There has been, in U.S. dollars, $380,825,000 of notes, or 99.7 per cent voted in favour and US$879,000, or 0.23 per cent voted against,” Calfrac executive chairman Ronald Mathison said at the debt-holders meeting.
The company said it will now take the outcomes of the votes to the court to approve the recapitalization deal. Wilks Brothers’ stake in the company is expected to be sharply reduced.
Source: Financial Post