06:46 AM EST, 11/04/2024 (MT Newswires) -- STEP Energy Services ( SNVVF ) , which rose 3.8% on Friday from near 52 week lows, on Monday agreed to go private with a private equity fund to pay $5 in cash per share for the company.

On Friday, STEP rose $0.13 to $3.56. The purchase price is a 40% premium.

ARC Energy Fund 8, which is being advised by ARC Financial, will acquire all of STEP's outstanding common shares that it does not currently own or control. The arrangement, which has been unanimously approved by STEP's board and is expected to close in December, is subject to shareholder approval, court approval, and customary closing conditions.

"STEP has consistently explored avenues to maximize value for our shareholders, which has led to the proposed transaction," Steve Glanville, president and chief executive of STEP, said in a statement. "We believe this is in the best interests of STEP."

In connection with the arrangement, STEP obtained a formal valuation of the shares as at October 31 from Ernst & Young, an independent valuator. The purchase price is in the upper third of the fair market value range of $4.40 to $5.30 per share, as determined by EY. The arrangement is not conditional on ARC obtaining financing.