Chesapeake Energy Corporation today announced that it has successfully completed its tender offer for Bronco Drilling Company.
Based on preliminary information from Computershare Trust Company, N.A., the depositary for the offer, as of the expiration of the tender offer, approximately 24,959,224 shares (which includes 691,967 shares that were tendered pursuant to guaranteed delivery procedures) were validly tendered and not withdrawn in the tender offer, representing approximately 86.7% of Bronco’s issued and outstanding shares. All validly tendered shares have been accepted for payment, which will be made in accordance with the terms of the tender offer.
After exercise of a top-up option granted by Bronco, Chesapeake intends to complete its acquisition of the remaining shares of Bronco through a short-form merger as soon as practical. In the short-form merger, any remaining Bronco shares (other than those held by Chesapeake, Bronco or any wholly-owned subsidiary of Chesapeake or Bronco, and any shareholders who validly exercise their appraisal rights in connection with the merger) will be exchanged for $11.00 per share in cash, subject to applicable withholding taxes.
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Source: Chesapeake Energy, June 6, 2011;