Bronco Drilling Company to be acquired
Bronco Drilling Company, Inc. (Nasdaq: BRNC) reported this morning that it will be acquired by Allis-Chalmers Energy Inc. (NYSE: ALY) for $$437.8 million, or $16.33 per share.
The purchase price represents a 21.8% premium over the closing price of Bronco Drilling’s stock on Jan. 23 of $13.41, and an 18.2% premium over the past 10 days’ average closing stock price of Bronco Drilling.
Based on the closing stock price of Allis-Chalmers on Tuesday, the merger will result in a combined company with an implied enterprise value of approximately $1.4 billion.
Shares of Bronco Drilling (BRNC) gained 14.69%, or $1.97, to $14.69 out of the gate. Shares of Bronco Drilling have been trading in the range of $11.21 to $19.21 for the past 52 weeks.
