Nabors to offer to acquire Command Drilling

Nabors Industries Inc.'s Canadian affiliate 19552 Yukon Inc. plans to offer to acquire all common shares of Command Drilling Corp., Calgary, for $3.30 (Can.)/share.

Sept. 17, 2001

By the OGJ Online Staff

HOUSTON, Sep. 17 -- Nabors Industries Inc.'s Canadian affiliate 19552 Yukon Inc. plans to offer to acquire all common shares of Command Drilling Corp., Calgary, for $3.30 (Can.)/share in cash.

Recently, Command Drilling established a committee to consider long-term strategic direction for the company, including succession planning, acquisitions, mergers, partnerships, joint ventures, and divestiture (OGJ Online, Aug. 27, 2001).

Nabors, which claims to be the world's largest land drilling contractor, said its offer represented a 20% premium over Command's share price Sept. 14.

The Houston company has entered into lockup agreements with shareholders and optionholders of command, giving Nabors an additional 24-25% of the shares of Command. It said these deals give it control over 35% of the common shares of Command.

Nabors will make the offer to the remaining shareholders "as soon as practicable." The offer will be contingent on deposit of a minimum percentage of shares, removal of any "poison pill" impediment, and regulatory approval.