Government & Regulatory | Service & Supply | Oilfield Services | Deals - Acquisition, Mergers, Divestitures
C&J, Nabors Merger Deal on Hold After Shareholder Outcry
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A Delaware court judge has ruled that Houston-based C&J Energy Services Inc. must consider competing proposals prior to finalizing its previously announced merger deal with Nabors Industries Ltd.
The decision comes after C&J shareholders stated the company’s board of directors didn’t make an effort to obtain the highest possible deal price, according to the Wall Street Journal. The deal struck with Nabors carries a price tag of $2.86 billion.
C&J issued the following statement: The ruling requires the Company to solicit competing proposals from other potential buyers for a period of 30 days before it can close its proposed transaction with Nabors' completion and production business. The manner in which the Company will be required to solicit competing proposals has not yet been established by the Court.
Josh Comstock, Founder, Chairman and Chief Executive Officer of C&J Energy Services, commented: "While we respect the Court's process, we disagree with the Vice Chancellor's findings and decision today, including his conclusion that under the circumstances of this transaction the Board was obligated to solicit proposals to acquire the Company before executing the merger agreement, and we intend to immediately appeal to the Delaware Supreme Court on an expedited basis. Our transaction with Nabors creates a diversified completion and production services provider and we believe it creates significant stockholder value. We remain committed to this transaction and focused on closing as soon as possible."