Seismic solutions provider Dawson Geophysical Co. (NASDAQ: DWSN) will merge with a subsidiary of seismic solutions provider TGC Industries Inc. (NASDAQ: TGE) in a stock-for-stock transaction, Dawson said Oct. 9. It will become a wholly owned subsidiary of TGC, which will change its name to Dawson Geophysical Co.and will trade on NASDAQ under the ticker “DWSN,” the company added.
When the transaction closes, Dawson’s current shareholders will own about 66%, and TGC’s current shareholders will own about 34%, of the combined company.
The transaction is scheduled to close in the first quarter of 2015, Dawson noted.
Before the transaction begins, TGC will implement a reverse stock split, and Dawson’s shareholders will receive shares, the company said. The stock split will reduce TGC’s currently outstanding shares to about 7.3 million from about 22 million. TGC will offer about 14.2 million split-effected shares in exchange for about 8 million shares held by Dawson’s shareholders, the company said.
When the transaction is closed, Steve Jumper will become chairman and CEO of the new company. He is currently Dawson’s chairman and CEO. Wayne Whitener will become vice chairman of the board at the new company. He is currently the president and CEO of TGC, Dawson said.
Dawson Geophysical Co. is based in Midland, Texas.
TGC Industries Inc. is based in Plano, Texas.
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