Tesco Corporation (USA) (NASDAQ: TESO) is having an incredible day in the market today, and for good reason. The company announced that it has entered into an acquisition agreement. Of course, this led to excitement among investors, sending the stock toward the top and prompting an alert from our partners at Trade Ideas. At the moment (10:38), TESO is trading at $4.30 per share after a gain of $0.40 per share or 10.26% thus far today.
TESO Gains On Acquisition News
As mentioned above, Tesco Corporation is having a strong day in the market after announcing that it has entered into an Arrangement Agreement. Under the agreement, Nabors Industries Ltd. (NYSE: NBR) will be acquiring all of the issued and outstanding common shares of TESO. Each share of TESO will be exchanged for 0.68 shares of NBR. As a result of the acquisition, the combined company will be a leading rig equipment and drilling automation provider.
The acquisition transaction puts a value of $4.62 per share on Tesco Corporation common stock. Based on the close on August 11, that represents a premium of 19% over the current value of shares. In a statement, Fernando Assing, President and CEO at TESO, had the following to offer...
“This is a very exciting opportunity to combine two world class companies that are highly focused on delivering best-in-class services to the oil and gas industry. This combination will further reinforce Nabors position as a leading rig equipment and drilling automation provider by integrating Tesco's advanced tubular services technology and products into the Nabors global rig footprint and NDS services. The new expanded platform also creates significant career opportunities for Tesco's employees as part of a much larger international organization.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TESO and NBR. While the acquisition is likely to take place, it is still subject to customary closing conditions. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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