The views expressed in this blog are the personal views of Trinidad’s President and CEO, Brent Conway, and do not constitute legal or financial advice to any person. Readers are advised to consult their own professional advisors before making any investment decision.
On Friday, October 5, Trinidad agreed to merge with Precision Drilling, creating an industry-leading contract driller. Both companies’ board of directors have agreed to the merger and recommend shareholders vote in favour. The merger is expected to be finalized later this year, following approval from our shareholders and certain regulators.
This merger comes on the heels of a hostile take-over bid submitted by Ensign, which Trinidad’s board recommends shareholders reject. Given that the Precision offer is higher than Ensign’s, this deal is better value for our shareholders – but it also better aligns with our company’s values, culture and vision.
Of course, with all these changes come a lot of questions. We’ve gathered some of the most common questions we’ve received since the announcement and passed them along to Brent Conway, our President and CEO. Keep reading to get answers from the CEO himself.
Most Common Questions:
1. Many employees were upset that they weren’t informed about the merger before the announcement went public. Why wasn’t Trinidad allowed to let employees know about the deal before everyone else?
I know it is hard to hear this kind of announcement in the news, rather than from us directly, but there are certain rules we have to follow. Trinidad’s shares are listed on the Toronto Stock Exchange, and that means we have to ensure that everyone gets important information about the company at the same time.
We sent an email out to our employees about the merger the moment the news was public and will make sure we keep you informed as the merger proceeds.
2. Why do you think Precision and Trinidad’s cultures are a great fit for one another?
Trinidad and Precision share many of the same core values. These similarities are key to bringing our respective teams together smoothly, and creating a strong and successful drilling contractor. We both place a lot of importance in:
Great people – We hire the best people and train them to excel. Both Trinidad and Precision have solid reputations and a history of strong performance at the field level. Our skilled and experienced people are the ones that make that possible.
Strong safety record – Keeping our people safe is at the core of our operations; both companies put safety first.
High quality equipment – We have some of the best rigs in the industry. We keep our rigs competitive with ongoing maintenance, upgrade them to meet our customers’ changing needs and embrace the benefits of new technology.
High performance culture – Both companies are known for their focus on not just meeting customers’ expectations but constantly finding ways to push boundaries and improve performance. It’s a key part of who we are.
3. With all the fears around job security, how should employees remain focused on their work?
I know this news can be distracting and unsettling, but it really is important to keep focused on your work. Keeping your mind on what you are doing will help you stay safe. Don’t forget that Precision isn’t buying Trinidad just for our rigs; they value our people and understand how important they are to our successful operations and business.
4. In comparison with Ensign’s hostile takeover bid, how is this merger more beneficial for shareholders?
There are a couple of important differences that make Precision’s offer better for our shareholders. Firstly, Precision’s offer is at a higher price than Ensign’s. Secondly, Precision’s offer gives our shareholders shares in Precision, meaning they can benefit from improving industry conditions and any efficiency gains the combined company makes. Ensign’s offer is all cash, so shareholders get a lower value, with no upside potential.