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Precision, Canada's biggest oil and gas drilling company, announced the $2 billion acquisition of Houston-based Grey Wolf in August as it looked expand its U.S. business.
The company offered $9.02 cash or 0.4225 of a Precision trust unit for each Grey Wolf share. Grey Wolf's shareholders had until Friday to choose if they wanted cash or Precision's trust units for each of their shares.
Precision's Toronto Stock Exchange-listed units have fallen about 60 percent since the offer, hit by weak oil prices and the global recession. The share portion of Precision's offer is now worth about $2.98 per share.
Precision struggled to find financing for the acquisition as credit markets tightened, saying earlier this month it would have to reduce debt, cut payouts to investors and pay a higher interest rate than expected to fund the deal.
"There's no question that the nation, in fact the globe, is in the throes of a significant recession," Kevin Neveu, Precision's chief executive, told the meeting. "It's a huge accomplishment that Precision was able to get this deal financed."
Still, he predicted that the North American natural gas market would rebound "sooner and more abruptly than anyone is forecasting right now," citing a rebound in the credit markets and global demand for energy.
The vote came at a special meeting of Grey Wolf shareholders. No breakdown of the results was provided.
Precision units fell 23 Canadian cents to C$8.34 at midmorning on Tuesday on the Toronto Stock Exchange.
Grey Wolf's American Stock Exchange-listed shares fell 16 cents to $2.98.
($1=$1.22 Canadian)
(Reporting by Anna Driver in Houston and Scott Haggett in Calgary; editing by Peter Galloway) Keywords: GREYWOLF/ (anna.driver@thomsonreuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net)
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