Ademi LLP is investigating NCS Multistage for potential breaches of fiduciary duty and other legal violations in its recently announced transaction with Weatherford. The investigation concerns whether NCS Multistage is obtaining a fair price for public shareholders. The law firm is scrutinizing the conduct of the NCS Multistage board of directors to determine if they are fulfilling their fiduciary duties to all stakeholders.

Under the terms of the transaction agreement, NCS Multistage stockholders will receive 0.554 shares of Weatherford common stock or a combination of 0.239 shares of Weatherford stock plus cash equal to 0.137 shares of Weatherford stock. On a blended basis, the deal equates to 0.463 shares of Weatherford common stock for each NCS Multistage share, with up to 19.99% payable in cash.

The transaction agreement imposes restrictions that may limit competing transactions for NCS Multistage. It includes a significant penalty if NCS Multistage accepts a competing bid. Additionally, NCS Multistage insiders are set to receive substantial benefits as part of change of control arrangements included in the deal.

Transaction Terms

Ademi LLP specializes in shareholder litigation involving buyouts, mergers, and individual shareholder rights. Shareholders interested in learning more about the investigation or joining the proceedings can contact the firm.