March 9, 2017 / 3:03 PM / 6 months ago

BRIEF-Western Energy Services announces strategic acquisition of Savanna Energy Services

March 9 (Reuters) - Western Energy Services Corp -

* Announces strategic acquisition of Savanna Energy Services Corp.

* Savanna shareholders will receive, for each Savanna share held, 0.85 of a Western share

* Transaction value, based on Western’s 20-day VWAP, is approximately $533 million

* Will acquire all of issued and outstanding common shares of Savanna in exchange for common shares of Western

* Deal including assumption of approximately $248 million in savanna net debt

* Expected that Chris Strong, current president, CEO of Savanna, another “mutually acceptable” nominee will join Western board

* Received a commitment letter from certain lenders for a revised credit facility to be available on closing to fund combined entity

* Transaction has received unanimous approval by directors of Savanna and by independent committee formed by Savanna board

* Deal provides for reciprocal non-completion fee of $15 million payable in certain circumstances if transaction is not completed

* Savanna, co agreed they will not solicit or initiate discussions regarding other business combination or sale of material assets Source text for Eikon: Further company coverage:

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