The $3.7 billion sale of Richmond-based CHC Helicopter Corp. (TSX:FLY) is expected to close September 16, seven months after the deal was announced in late February.
U.S. private equity firm First Reserve Corp. will become the new owners of the world's largest provider of helicopter services to the global offshore oil and gas industry. The sale is one of the largest buyouts in the oilfield services sector.
CHC has aircraft operating in more than 30 countries. It has regional bases in Scotland, Norway and Vancouver.
Under the terms of the deal, an affiliate of First Reserve acquired all the outstanding CHC shares for $32.68 per share, or approximately $1.5 billion. It also assumed $800 million in debt and will take on the assumed liability associated with off-balance sheet aircraft leases valued between $1.4 billion and $1.5 billion. Overall, shareholders received a 49% premium from the sale.
Despite the sale to a U.S. company, CHC's headquarters will remain in Richmond. Mark Dobbin, the executor of the estate of Craig Dobbin, the late CHC founder, had voted to approve the sale to pursue other interests.
Because of the closing date of the sale, CHC will not be filing financial statements for the quarter ending July 31 that were otherwise due on September 15.