Its board has unanimously determined Total Energy’s takeover offer has significantly undervalued the common shares of Savanna.
The Savanna board further added that the offer was not in the best interests of the company or its shareholders, while asking them to reject the offer.
In November, Total had offered 0.13000 of its share in return for each of the Savanna shares.
Savanna Board chair and special committee chair Jim Saunders called the Total offer to be significantly undervaluing his company besides terming it as an unsolicited takeover.
Saunders added: "This unsolicited takeover offer is highly opportunistic and timed to deprive Savanna shareholders of the value of significant positive recent market changes and the actions Savanna has taken to solidify the Company’s balance sheet, reduce its risk profile and position the company to participate in the recovery of industry conditions.
“Total’s proposed share exchange also implies a current discount of 5% when over the past five years transactions of this nature have carried a premium of approximately 40% at the time of the offer. Our Board of Directors urges shareholders to reject Total’s undervalued offer."
Headquartered in Canada, Savanna operates in North America and Australia delivering a range of drilling, well service and other related services.
Earlier in the month, the company said that it received offers from other potential bidders after Total Energy’s approach. Savanna, in a separated announcement, said that its business has picked up in Canada, the US and Australia.
