Wilks Brothers to make offer for Calfrac if recapitalization plan rejected

A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. THE CANADIAN PRESS/Jeff McIntosh

Wilks Brothers LLC says it will make a takeover offer for Calfrac Well Services Ltd. if shareholders reject the company’s recapitalization plan.

The Texas-based competitor, which already owns a roughly 20 per cent stake in Calfrac, says it will pay 18 cents per share. Calfrac shares closed at 15 cents on the Toronto Stock Exchange on Tuesday.

Calfrac and Wilks Brothers have been fighting over its restructuring plan that will see its debt holders swap unsecured notes for shares in the company.

Read more: Calfrac says U.S. court has sided with company in fight with Wilks Brothers

Calfrac says its special committee and board will consider and evaluate the Wilks Brothers offer if and when it is received.

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The company’s reorganization under the Canada Business Corporations Act must be supported by two-thirds of Calfrac’s debt holders and shareholders to proceed. Votes are to be held Sept. 17.

Wilks Brothers has vowed to vote its block of Calfrac’s shares against the plan.

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