Strictly: Drilling

[Old Frank P]

Bowridge Resource backs $30M ESI takeover

CALGARY (CP) — Bowridge Resource Group, an acquisition-minded oil and gas service company, has agreed to a $30-million takeover by ESI Energy Services.
ESI is offering $1.15 a share (TSE: ESI) for Bowridge, which last trade at 80 cents a share before the bid was announced Tuesday.

Bowridge said its board of directors is unanimously recommending that shareholders accept the offer. Directors, officers and certain major shareholders with more than 40 per cent of the common shares have agreed to the deal.

The offer is conditional on acceptance by two-thirds of the stockholders.

“I believe that this cash offer provides excellent value for the Bowridge shareholders and is reflective of the tremendous commitment of our management and staff over the years to build shareholder value,” said Bowridge chief executive Jim Rathwell.

With its recent acquisition of Toran Power and Equipment Ltd., Bowridge added an oilfield technology and services division to its stable.

ESI is a private company in the energy services business. Its board of directors consists of Bryan Lawrence of New York and Yook Mah and Robert Dunstan, both of Calgary.

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