NEW YORK (AP) — U.S. shares of WSP Holdings Ltd. soared Thursday on news that the company has agreed be acquired by a pair of Chinese investment firms and become a privately held company.
The Chinese company, which makes seamless casing, tubing and drill pipes for the oil and natural gas sectors, valued the deal with HDS Investments LLC and JM OCTG GROUP Ltd. at $893.6 million including the assumption of debt.
Under the agreement, holders of WSP's common shares will receive 32 cents in cash for each of their shares, while holders of the company's American depositary shares, which represent 10 ordinary shares, will receive $3.20 in cash for each of their shares. The ADS price represents a doubling of the company's Wednesday closing price of $1.60.
The deal, which has been approved by WSP's board, remains subject to shareholder approval and is expected to close in the second quarter of 2013.
WSP shares rose $1.37, or 85.6 percent, to $2.97 in morning trading after rising as high as $3.01 earlier in the session. That was its highest level since August 2011, according to FactSet.