CALGARY, ALBERTA--(Marketwired - Dec. 12, 2016) - Savanna Energy Services Corp. ("Savanna") (TSX:SVY) today announced that it has appointed a Special Committee of independent directors to oversee Savanna's response to an unsolicited takeover bid launched by Total Energy Services Inc. ("Total"). The Special Committee is comprised of James Saunders (Chair), Allen Brooks, Stella Cosby, John Hooks and Kevin Nugent.
Savanna's Board of Directors will carefully review and evaluate the offer and related takeover bid circular with its financial and legal advisors and will make a recommendation to shareholders in due course through a news release and a Directors' Circular in accordance with applicable securities laws.
Savanna advises shareholders not to deposit any shares to the offer and not to take any other action concerning the offer until the Special Committee and Board of Directors have had an opportunity to fully review the offer and make a formal recommendation to shareholders. The bid will remain open until March 24, 2017, providing time for shareholders to reach a decision.
"Savanna's board is committed to acting in the best interests of the Corporation and its shareholders," said Chris Strong, President and Chief Executive Officer. "We will review Total's hostile offer while also remaining focused on executing our strategic plan to create shareholder value.
"Among other things, we are working to complete our previously disclosed significant financing and comprehensive balance sheet restructuring this week. The financing and restructuring significantly reduces our risk profile and enables us to move forward and participate in the recovery of market conditions."
Savanna has retained Peters & Co. Limited as financial advisor, Burnet, Duckworth & Palmer LLP as legal counsel, Longview Communications Inc. as communications advisor and D.F. King Canada as information agent.
Savanna is a leading contract drilling and oilfield services company operating in North America and Australia providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information relating to the closing of the previously announced financings and their effect on Savanna. These forward-looking statements and information are based on certain key expectations and assumptions made by Savanna including receipt of approvals. Although Savanna believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as Savanna cannot give any assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inability to obtain regulatory, risks associated with general economic conditions, the demand for Savanna's services, volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally, currency exchange rate risk, compliance with covenants and/or repayment obligations under Savanna's credit facilities and senior note indenture, changes in legislation, dependence on, and concentration of, major customers, and the creditworthiness and performance by the Company's counterparties and customers.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect Savanna's operations or financial results are included in Savanna's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Savanna does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.