RE:RE:RE:Market cap 40m …. Implied value of deal 77m On my radar wathlist of things to buy if stocks were to crash lower in value, patient for low points and I dont think sector has bottomed out in canada yet..but Akita Drlling was my fav.
But Akita could have same problem CWC had...if put for sale isnt many logical on a strategic level merger fits.
Need more than one bidder to get a good price, like an auction principle.
And that is probably why the industry has been slow to consolidate and take capacity out, only one logical buyer to be consolidator and may gains with it...be total energy services (savanna drillng).
Total has the balancesheet strength debtwise and total would gain buying a competitor that bids on work.
Both CWC and Akita fit for Total. The fact Total passes maybe they are look at Akita or Stampeder.
Total can gain from a merger in many ways like economies of scale from larger. Precision doesnt get this to same effect as Total does as PD is already so big.
But Total cant build wildly high as Total has unused capacity in their own current fleet.
Akita needs to keep Repsol as a customer after the peyto buy as well.
But like Akita in many ways. Watch always and who knows I may buy one day.
GL on it. Nobody knows it Akita is strong for sure. Maybe market retail value it better.
They need to work for a divy if they dont get bought. to get better value.