CALGARY — Calfrac Well Services Ltd. is postponing a vote on its recapitalization plan following an unsolicited takeover offer for the company by Texas-based Wilks Brothers LLC last week.
Calgary-based Calfrac says it will now hold a vote by its shareholders and unsecured noteholders on the management reorganization plan on Sept. 29 instead of Sept. 17.
Wilks Brothers, which owns nearly 20 per cent stake of Calfrac and opposes the recapitalization plan, has made an offer of 18 cents per share for Calfrac.
The company says its board of directors will review the takeover offer and make a formal recommendation to shareholders by Sept. 24.
Proxy advisers Institutional Shareholder Services Inc. and Glass Lewis & Co. published reports last week with the former supporting rejection and the latter urging support for the management reorganization plan.
But Glass Lewis switched its recommendation in light of the formal Wilks Brothers offer for Calfrac, noting 18 cents is “far superior” to the three cents per share common shareholders would receive under the management plan.
Calfrac’s reorganization under the Canada Business Corporations Act must be supported by two-thirds of Calfrac’s debtholders and shareholders in separate votes to proceed.
It has said that its recapitalization proposal has the backing of 78 per cent of the holders of senior unsecured notes.
This report by The Canadian Press was first published Sept. 14, 2020.
Companies in this story: (TSX:CFW)
The Canadian Press