According to the amended agreement, at the effective time of the merger, stockholders of Bronco Drilling will receive aggregate merger consideration comprised of $200 million in cash and 16.8 million shares of Allis-Chalmers common stock.
The combined consideration has a value of $18.25 per share of Bronco Drilling common stock based on the closing price of Allis-Chalmers’s common stock on May 30, 2008.
Upon completion of the transaction, it is anticipated that Allis-Chalmers’s and Bronco Drilling’s stockholders will own approximately 68% and 32%, respectively, of the combined company.
