OMNI Energy (OMNI) Agrees to Be Taken Over For About $122 mln

Shares of Omni Energy Services (OMNI) surged 30 percent to $2.73 in morning trading, the most intraday since April 29, after the Carencro, Louisiana-based oilfield seismic services provider to the domestic oil and gas industry agreed to be acquired for $2.75 per share, or $122 million, including assumption of debt, by private investment co. Wellspring Capital Management.

The offer price is a 30 percent premium to OMNI’s Thursday closing price of $2.12 on Nasdaq.

CEO Brian J. Recatto said the deal will deliver a “significant premium for [OMNI’s] shareholders especially in light of the uncertain markets after the unprecedented drop in [co.’s] end markets in 2009 and the continued current uncertainty in the Gulf of Mexico” .

Under the terms of the deal, Omni has until July 16 to actively solicit other bidders. If another bid is accepted, Omni must pay a “break up” fee of $1.8 million, plus expenses of up to $0.75 million to terminate the merger agreement with the Wellspring entities.

The transaction is not subject to a financing condition and is expected to close in the second half of the year.

OMNI gained 56 cents, or 26.42%, to $2.68 rtq at 11:15 E.T. in Nasdaq composite trading.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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