A merger between oilfield services provider C&J Energy Services Inc with a unit of Nabors Industries Ltd. can proceed, Delaware's supreme court ruled on Friday. The court overturned an injunction from a lower court that said C&J should have sought more offers before agreeing to the $2.86 billion cash and stock deal in June. A retirement fund for employees of the city of Miami had asked for the injunction.The court said the injunction was granted in "error" because all shareholders will have a chance to vote on the merits of the agreement, which plaintiffs said did not give adequate protections to C&J shareholders.The deal has drawn the attention of tax experts tracking so-called inversions, in which U.S. companies reincorporate abroad to cut their tax bills.The court said the transaction is unusual as C&J, a U.S. corporation, will acquire a subsidiary of Nabors, which is domiciled in Bermuda. But Nabors will retain a majority of the equity in the surviving company, which will be based in Bermuda to obtain more favorable tax rates, the court said.
C&J Energy Services, Inc. is a provider of hydraulic fracturing, coiled tubing, wireline and other complementary services with a focus on complex, technically demanding well completions. Shares of CJES traded higher by 4.98% or $0.68/share to $14.33. In the past year, the shares have traded as low as $11.38 and as high as $34.93. On average, 1964490 shares of CJES exchange hands on a given day and today's volume is recorded at 2894586.
Nabors Industries Ltd. (Nabors) is the land drilling contractor and land well-servicing and workover contractors in the United States and Canada. Shares of NBR traded higher by 14.63% or $1.74/share to $13.63. In the past year, the shares have traded as low as $9.91 and as high as $30.24. On average, 8916160 shares of NBR exchange hands on a given day and today's volume is recorded at 21121828.
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