Business
Trican Well Service Ltd. Announces Sale of Its Water Management Business for $17.6 Million
Calgary, Alberta--(Newsfile Corp. - November 7, 2019) - Trican Well Service Ltd. (TSX: TCW) ("...
About this update from Trican Well Service Ltd.
[{"type":"text","content":"\nTrican Well Service Ltd. Announces Sale of Its Water Management Business for $17.6 MillionCalgary, Alberta--(Newsfile Corp. - November 7, 2019) - Trican Well Service Ltd. (TSX: TCW) (\"Trican\" or the \"Company\") is pleased to announce that it has entered into a definitive agreement with an investor group led by Green Energy Services Inc and in partnership with Uujo Developments LP. (a Doig River First Nation Company), (collectively, the \"Purchaser\" or \"Green\") for the sale of all material assets and business of Fraction Energy Services Ltd. (\"Fraction\"), a wholly owned subsidiary of Trican (the \"Transaction\").The agreed purchase price for the Transaction is $17.6 million in cash consideration subject to customary adjustments. Closing of the Transaction is expected to occur on or about Q1-2020 and is subject to certain conditions precedent, including purchaser's bank financing as well as the delivery of customary closing documentation. The Transaction agreement prohibits Trican from soliciting any competing proposals and subject to certain conditions, provides for a $0.8 million termination fee payable from the Purchaser to Trican and a reciprocal $0.5 million termination fee payable from Trican to the Purchaser in certain circumstances. Pursuant to the terms of the Transaction agreement, Trican will provide certain transitional services following closing of the Transaction on terms that are customary for agreements of this nature. In anticipation of a successful Transaction close, Green and Fraction have agreed to immediately collaborate on certain customer tender proposals for work in the upcoming months. Dale Dusterhoft, President and Chief Executive Officer of Trican, noted, \"The transaction with Green Energy Services will further strengthen Trican's financial position and allow Trican to focus on its core business lines. We believe Green, together with Fraction, will continue to provide operational leadership and superior service for their water management clients. We would like to thank our employees, customers, and suppliers for their support of Fraction over the last number of years.\"In the last 12 months through to the end of Q3-2019 and independent of this Transaction, Trican has monetized $97.9 million of assets, including $72.7 million in proceeds from the Q4-2018 secondary offering of common shares of K...