HYTHE, AB – Hyduke Energy Services Inc. has announced that they have entered into a Share Purchase Agreement to purchase all issued and outstanding shares of Western Manufacturing Ltd. Western Manufacturing is a private corporation engaged in the business of production tank manufacturing and other oilfield equipment manufacturing and the company is based in Hythe.
Hyduke will also acquire the assets of Ledarco Industries Ltd. an affiliated company to Western involved in the regional transportation of manufactured components, raw materials and finished products.
Total consideration for shares of Western as well as the assets of Ledarco are expected to total close to $5.5 billion through a combination of cash, debt assumption. The initial issuance by Hyduke of 735,295 common shares and an additional amount of common shares, not to exceed 1,050,000 common shares, is to be settled within 180 days after closing based on post-closing financial adjustments.
The price of issued shares will be $0.48 per share. This is equal to the volume weighted average price on the Toronto Stock Exchange for the five trading days prior to and including February 28, 2017.
The transaction is expected to close as soon as possible with an outside date of April 30, 2017.