C&J Energy Services Inc. issued a statement in response to a Nov. 24 bench ruling by the Delaware Chancery Court that requires the company to solicit competing proposals from other potential buyers for a period of 30 days before it can close its proposed merger with Nabors Industries' completion and production business. The manner in which C&J Energy will be required to solicit competing proposals has not yet been established by the court.
"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," said Josh Comstock, founder, chairman and CEO of C&J Energy Services. "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 are focused on closing as soon as possible."
C&J Energy Services’ $2.86 billion merger with Nabors, announced in late June, would link up two oilfield equipment firms that provide pressure pumping services to US shale oil companies.
The merger will involve C&J Energy’s payment of $937 million in cash and 62.5 million shares for Nabors’ fracturing business, according to the Wall Street Journal. Technically, C&J Energy is the buyer in the deal, but Nabors would own 53% of the business. Once the merger is completed, the new business, which would be called C&J Energy Services Ltd., would have 1.1 million hydraulic fracturing horsepower, 1,500 trucks, and more than 680 workover rigs.