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Topics  News & Markets

Seaway Energy shareholders reject privatization bid from managers

By The Canadian Press  | February 02, 2012

CALGARY - Oilfield service company Seaway Energy Services Inc. (TSXV:SEW) says its minority shareholders have narrowly rejected a going-private deal offered by the firm's senior management.

The small company's management and directors, including president and CEO Jerry Budziak, own about 40.5 per cent of Seaway Energy's shares.

Their offer of four cents per share was conditional on the support of a simple majority of minority shareholders. They voted 50.57 per cent against the deal, Seaway said in a statement.

Seaway has about 28.9 million shares outstanding, so the offer for the 17.2 million shares owned by minority shareholders was worth nearly $700,000.

Seaway provides environmental consulting services to the oil and gas industry. The company manages exploration and development projects ranging from building access roads to cleaning up drilling sites.

Seaway shares fell half a cent to three cents in afternoon trading on the TSX Venture Exchange on resumption after being halted ahead of the announcement.

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