Malaysia's Petronas to buy Canada's Progress Energy for $5.4bn
28 Jun 2012
Malaysia's state oil company Petroliam Nasional Berhad (Petronas) today agreed to buy Canada's Progress Energy Resources Corp for C$4.8 billion ($4.7 billion) – including debt, the deal is valued at about C$5.5 billion ($5.4 billion).
Under the terms of the deal, Petronas Canadian subsidiary, Petronas Carigali Canada Ltd, will pay C$20.45 per share, a premium of 77 per cent to Progress Energy's yesterday closing price of C$11.55 on the Toronto Stock Exchange.
The deal comes a year after Petronas paid C$1.07 billion ($1.10 billion) for half of Progress Energy's working interest in three shale-gas assets in British Columbia. (See: Progress Energy to sell half its North Montney shale-gas assets to Petronas for C$1.07 bn)
Calgary-based Progress Energy explores and develops large unconventional natural gas resources in northeast British Columbia and northwest Alberta.
Progress holds approximately 900,000 net acres of Montney rights over its entire British Columbia and Alberta land base, making it one of the largest Montney land rights holders.
Petronas said the deal builds on an arrangement between both companies to develop some of Progress' shale gas reserves and to develop a liquefied natural gas (LNG) export facility in western Canada.
