March 9 (Reuters) - Western Energy Services Corp WRG.TO -
* Announces strategic acquisition of Savanna Energy Services Corp.
* Savanna shareholders will receive, for each Savanna share held, 0.85 of a Western share
* Transaction value, based on Western's 20-day VWAP, is approximately $533 million
* Will acquire all of issued and outstanding common shares of Savanna in exchange for common shares of Western
* Deal including assumption of approximately $248 million in savanna net debt
* Expected that Chris Strong, current president, CEO of Savanna, another "mutually acceptable" nominee will join Western board
* Received a commitment letter from certain lenders for a revised credit facility to be available on closing to fund combined entity
* Transaction has received unanimous approval by directors of Savanna and by independent committee formed by Savanna board
* Deal provides for reciprocal non-completion fee of $15 million payable in certain circumstances if transaction is not completed
* Savanna, co agreed they will not solicit or initiate discussions regarding other business combination or sale of material assets Source text for Eikon: ID:nCCN4z6Ljb Further company coverage: WRG.TO