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National Energy Services Reunited Corp. Finalizes Agreement to Close Acquisition of SAPESCO
HOUSTON, TX / ACCESSWIRE / June 2, 2020 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR)(NASDAQ:NESRW), a national,
About this update from National Energy Services Reunited Corp
[{"type":"text","content":"HOUSTON, TX / ACCESSWIRE / June 2, 2020 / National Energy Services Reunited Corp. (\"NESR\" or the \"Company\") (NASDAQ:NESR)(NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa (\"MENA\") and Asia Pacific, announced a final agreement pursuant to which NESR will acquire Sahara Petroleum Services Company S.A.E. (\"SAPESCO\"), the largest indigenous oilfield services company in Egypt with operations across the MENA region.The transaction, effective June 1, 2020, will result in NESR becoming a significant player in the Egyptian oil and gas industry, where it does not presently operate. This transaction will also add Industrial and Chemical Services, which service the midstream and downstream sectors, to its portfolio. Furthermore, SAPESCO's existing upstream services contracts in Saudi Arabia, the UAE, Libya and Kuwait will be accretive to NESR's contract portfolio.Under the terms of the agreement, NESR will acquire all issued and outstanding shares of SAPESCO in a cash and stock transaction comprised of $11 million paid at closing and an additional $10 million paid in five equal installments by year-end, for a total cash consideration of $21 million, and the issuance of 2,237,000 NESR shares based on a $10.00 per share conversion rate. The agreement also includes a final earnout of up to $3 million in cash and provision of additional shares at year-end based on collection of certain receivables. No additional shares will be issued as final earnout if the NESR share price is equal to or exceeds $9 per share.Following closing of the transaction, NESR will settle $11 million of SAPESCO's long-term debt and will assume the remaining $10 million of long-term debt and approximately $8 million of short-term debt from an existing local credit facility. The total cash payment will be funded from NESR's balance sheet and NESR's existing revolving credit facility. Final regulatory approval for the share transfer is expected to be completed before June 30, 2020; however, NESR has assumed control of SAPESCO effective June 1, 2020.Mr. Akmal Kortam, owner and founder of SAPESCO, commented, \"I am very pleased to see the finalization and closure of our agreement, and we look forward to joining NESR, especially in the current macro environment where a larger platform and scale will...