(MENAFN- Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas for traders, including oil and gas Stocks reports on trading for STEP energy Services Ltd. (TSX: STEP ), an oilfield service company founded in 2011 that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions.
The stock made the TSX top percentage gainers list in today's trading on news of a take private transaction at $5.00 per share. The stock is trading at $4.9850, up $1.4250, gaining 40.03% on volume of over 3 Million shares as of this report.
STEP announced today that it has entered into a definitive arrangement agreement (the "Arrangement Agreement") with 2659160 Alberta Ltd. and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) to take the Company private in an all-cash transaction.
Under the terms of the Arrangement Agreement, ARC will acquire all of the issued and outstanding common shares of STEP that ARC (and ARC Energy Fund 6) does not currently own or control or direct, directly or indirectly, (the "Minority Shares") for cash consideration of $5.00 per Share by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Act").
The Arrangement, which has been unanimously approved by STEP's board of directors entitled to vote thereon, will be subject to shareholder approval, including the approval of the holders of the Minority Shares (the "Minority Shareholders"), court approval, and customary closing conditions. The Arrangement is expected to close in December 2024.
Steve Glanville, President and CEO of STEP, commented, "As one of the founding members of STEP, I have seen the Company develop into one of the best-in-class energy services companies in North America. We have successfully navigated the organization from our initial start-up days to the IPO in 2017 and through numerous industry cycles. We have remained committed to our clients, communities, and our dedicated employees, who we call professionals. We are tremendously proud of the company we have built. STEP has consistently explored avenues to maximize value for our shareholders, which has led to the proposed transaction. We believe this is in the best interests of STEP. We would like to thank STEP shareholders for their support over the years."
Highlights Of the Arrangement
Significant Premium
The purchase price represents a premium of approximately 40% to STEP's November 1, 2024 closing price on the TSX.
All Cash Consideration
The purchase price payable to Minority Shareholders upon closing of the Arrangement will be paid in cash.
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