Trinidad considering all options to enhance shareholder value
Trinidad Drilling Ltd. says their Board of Directors has begun a strategic review to enhance shareholder value that could include a sale or merger, according to a press release.
They believe the current trading price of its common shares does not reflect the value of the company, despite improving industry fundamentals and recent steps taken by Trinidad to improve shareholder value.
The Board intends to undertake a comprehensive review to identify and consider a broad range of alternatives and their potential to enhance shareholder value, including a sale of selected assets, a merger, a corporate sale, a strategic partnership, various capital re-deployment opportunities or any combination of the foregoing.
The company does not intend to set a definite schedule to complete its evaluation or process and cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.
The Board has appointed a special committee of independent directors, chaired by Trinidad’s lead director, Ken Stickland, to facilitate and lead the review.
The Board has engaged TD Securities Inc. and Blake, Cassels & Graydon LLP as its financial and legal advisors, respectively, to assist it with the review.
Trinidad says they are in a strong financial position, generating free cash flow from its core business to fund its previously announced capital program, and also has additional liquidity through its existing credit facilities.
Throughout the strategic review process, Trinidad says it will continue to execute on its business strategy.