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Wilks Brothers to make offer for Calfrac if recapitalization plan rejected

Last Updated Sep 2, 2020 at 7:40 am MDT

A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. A Texas suitor for Calgary-based Calfrac Well Services Ltd. is urging shareholders to reject a management recapitalization proposal favoured by its senior debtholders. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Wilks Brothers LLC says it will make a takeover offer for Calfrac Well Services Ltd. if shareholders reject the company’s recapitalization plan.

The Texas-based competitor, which already owns a roughly 20 per cent stake in Calfrac, says it will pay 18 cents per share. Calfrac shares closed at 15 cents on the Toronto Stock Exchange on Tuesday.

Calfrac and Wilks Brothers have been fighting over its restructuring plan that will see its debt holders swap unsecured notes for shares in the company.

Calfrac says its special committee and board will consider and evaluate the Wilks Brothers offer if and when it is received.

The company’s reorganization under the Canada Business Corporations Act must be supported by two-thirds of Calfrac’s debt holders and shareholders to proceed. Votes are to be held Sept. 17.

Wilks Brothers has vowed to vote its block of Calfrac’s shares against the plan.

This report by The Canadian Press was first published Sept. 2, 2020.

Companies in this story: (TSX:CFW)



The Canadian Press