Tuesday July 29, 2014



Pacific Rubiales to acquire C&C Energia to form bigger Colombia-focused company

CALGARY - Pacific Rubiales Energy Corp. has agreed to acquire C&C Energia Ltd. in a deal that will create a larger Colombia-focused oil and gas explorer.

Under the deal announced Monday, each C&C (TSX:CZE) share will be exchanged for 0.3528 Pacific Rubiales shares, for a total value of $7.81 per share, or about $500 million.

C&C investors will also get a share of the combined company, dubbed Newco, which are worth another $2 per share.

The combined value of $9.81 per share marks a 52 per cent premium over C&C's volume-weighted share price in the 20 days leading up to Friday.

Pacific Rubiales (TSX:PRE) expects to keep a five per cent interest in Newco.

"We consider this to be a win-win for the shareholders of both companies. For Pacific Rubiales shareholders, it adds production and reserves at attractive and accretive metrics and assets whose value can be increased through accelerated activity and transportation and marketing synergies," said Pacific Rubiales CEO Ronald Pantin.

"For C&C Energia shareholders, it provides an immediate premium valuation, enhanced liquidity and participation in the growth of Colombia's largest independent oil company with a history of generating consistent shareholder returns. C&C Energia shareholders will also have continued exposure to the producing assets through the new ownership in Pacific Rubiales common shares as well as the exploration upside provided by a well-funded Newco."

The deal, which is subject to shareholder, regulatory and stock-market approval, is expected to close early next year.

C&C shares rose nearly 19 per cent to $8.90 on the Toronto Stock Exchange Monday afternoon.

Pacific Rubiales stock dropped about 1.5 per cent to $21.79 on the TSX.


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Pipeline News North welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus


About Us | Advertise | Contact Us | Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy

LOG IN



Lost your password?