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Vet67to82 (< 20)

Grey Wolf Inc. (GW) and Basic Energy Services (BAS)

Recs

29

April 22, 2008 – Comments (0) | RELATED TICKERS: GW , BAS , RIG

Quick Math:   Merge two companies to  form a new company (GW new) valued at about $2.9 billion... 54% owned by current Grey Wolf holders, 46% by  Basic Energy Services (BAS), and will have 85 million shares outstanding.

        Basic Energy Services (BAS) 46%= $1,334,000,000 in market cap  
                and 46% of 85 million shares=       39.1 million shares 

                    $1,334,000,000 /   39.1 million shares    =$34.12 per share approximation


        Cash     1000 BAS shs x $6.70= $6700
        Stock   1000 BAS shs x 0.9195=919.5 shs GW (new)

Estimate 919.5  GW (new) x 34.12= 31373.34 + $6700 cash= $38073.34  or Approx $38.07 per sh (1000 shs)  

  Greywolf's 54%=  $1,566,000,000  in market cap
        and 46% of 85 million shares=  45.9 million shs

                  $1,566,000,000 /  45.9 million shs           = $34.120000000  per share approximation

     Cash     1000 GW shs x $1.82= $1820
     Stock   1000 GW shs x 0.25=250 shs GW (new)

     Estimate 250 GW (new) x 34.12= 8530 + 1820 cash= $10350  or Approx $10.35 per sh (1000 shs)   

 4/22/2008 close:   GW   $7.03 -0.20        vs $10.35 equals     BUY

                             BAS  $25.76 - 0.43    vs $38.07  equals    BUY  

 

 

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