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CHC Helicopter sells to U.S. fund for $3.7B

Last Updated: Friday, February 22, 2008 | 4:13 PM ET

CBC News

CHC Helicopter Corp., which provides flight services to the oil and gas sector, is being sold to a U.S. private equity firm in a deal that values the company at $3.7 billion.

Richmond, B.C.-based CHC called the deal the largest-ever buyout in the oilfield services industry.

CHC says it is the world's largest operator of Sikorsky S-76 helicopters.CHC says it is the world's largest operator of Sikorsky S-76 helicopters.
(CHC)

Shareholders of CHC will get $32.68 for each class A or class B share they hold for a total payout of about $1.5 billion.

The overall value also includes about $800 million in assumed debt, and between $1.4 billion and $1.5 billion in assumed liabilities related to aircraft leases.

Investors reacted by sending the class A shares of CHC up more than 38 per cent, or $8.37 to $30.25 on the TSX.

Started in Newfoundland by the late Craig Dobbin, the company moved to the West Coast in 2004. The firm currently has aircraft operating in 30 countries, with regional bases in Aberdeen, Scotland, Stavanger, Norway, and Vancouver.

The estate of Dobbin, which owns 14 per cent of CHC's class A shares, 95 per cent of the class B shares and all of its ordinary shares, has agreed to support the deal with First Reserve.

"I'm glad to see that First Reserve recognized the value that was created in CHC over the years, and was able to translate that value into a fair offer for all shareholders," said CHC chairman Mark Dobbin.

First Reserve has offices in Greenwich, Conn., Houston and London, England.

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