CWC.scenariosStrategic options were announced on May 4th, based on balance sheet issues with most pure drillers there aren't many who can deal realistically. Brookfield wouldn't have interest in seeing buyers such as WRG-TDG who are buried in debt. Doubt these co's would want to further dilute at a time when they are all trading at less than .65 of book value anyways. We're sure that GMP/CIBC are shopping it to all but we only see 3 potential scenarios.
CJ Energy Service-CJ...zero debt, aboot 350M cash on balance sheet, have a Cad service rig division...would make them a player in service rigs and a foundation to add on the other 2 service lines.
Ensign Energy Svcs-ESI.TO..debt is a bit high but would size up their service rigs div
High Arctic-HWO.TO..checks all the boxes, makes the most sense...all comes down if they can agree on price, they are notoriously cheap.
Brookfield Pvt Equity div...buys in the 25% which they don't own....makes the most sense. Likely, only minimum interest and not much appetite for any sort of bidding war. Based on recent deals, .40/.50 bid and their bankers would feel comfortable on writing a fairness opinion in favor of a deal.
btw, buyback continues...
www.canadianinsider.com/company?menu_tickersearch=CWC