The Board of Directors of Savanna Energy Services Corp. (Savanna), on the recommendation of the Special Committee, has unanimously determined that the offer from Total Energy Services Inc. (Total) to purchase all of the
common shares of Savanna on the basis of 0.13 common shares of Total for each common share of Savanna significantly undervalues the common shares of Savanna, is not in the best interests of Savanna or its shareholders and that shareholders should reject the offer.
"The Total offer significantly undervalues Savanna, and is not in the best interest of the Company and its shareholders," said Jim Saunders, Chair of the Savanna Board and Chair of the Special Committee. "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."
Peters & Co. Limited has provided its opinion to the Special Committee and Board of Directors of Savanna that the consideration offered pursuant to Total's offer is inadequate, from a financial point of view, to shareholders of Savanna.
The Savanna Directors’ Circular also provides a complete background to the Total offer. As previously announced, under the supervision of the Special Committee, Savanna's management, with the assistance of its financial and legal advisors, intends to conduct a formal process to explore the full range of strategic alternatives, which may include a merger or partnership with strategic or financial partners, a sale reflecting full and fair value for shareholders of Savanna or an acquisition by Savanna, with a view to maximizing value for all shareholders of Savanna. Rejecting the Total offer requires Savanna shareholders to DO NOTHING.