Allis-Chalmers Energy (ALY) Vaults on Seawell Ltd. Buyout Offer

Allis-Chalmers Energy Inc. (ALY) jumped 60 percent to $3.65 on Friday, the most intraday since June 2004, after the oilfield-services provider said it had agreed to be acquired by offshore drilling contractor Seawell Ltd. in a deal valued at $890 million, or $4.25 a share, 85% more than yesterday’s $2.30 PPS close.

Co.’s announced the deal after the markets closed on Thursday and said that their Boards of Directors had unanimously approved a definitive merger agreement providing for the acquisition of ALY by Seawell. The combined company is projected by equity research analysts to have estimated revenues of $1.3 billion and a contribution to EBITDA of $195 million in FY 2010.

The merger is conditioned on Seawell raising  no less than $100 million and have its shares listed on either the Oslo Bors or the London Stock Exchange.

The parties anticipate that the transaction will close at the end of the calendar year.

Shares of Allis were up $1.25, or 54.35%, to $3.55 at 12:05 a.m ET on Friday. ALY shares have traded between $1.79 and $4.94 over the last 52 weeks.

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About Ari Haruni 150 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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