Sinopec extends $1.8 billion takeover bid for Tanganyika Oil
04 December 2008
Sinopec International Petroleum Exploration and Production Corporation has extended a $1.8 billion (C$2.25 billion) take-over offer for Canada-based Tanganyika Oil Company Ltd till 19 December as the deal was yet to get approval from Chinese regulators.
Mirror Lake Oil and Gas Company Limited, an indirect, wholly-owned subsidiary of Sinopec, had offered to purchase all of the issued and outstanding common shares of Tanganyika Oil Company Ltd at C$31.50 per share, including all the common shares which may become outstanding upon the exercise of outstanding stock options or which are represented by Swedish Depositary Receipts.
''The offer is now open for acceptance until 12:01 pm (Calgary time) on 19 December 2008, unless withdrawn or further extended. The offer is subject to certain conditions, including receipt of all required regulatory approvals from the government of the People's Republic of China,'' Sinopec said.
The company said it is taking all necessary steps to obtain regulatory approval before the expiry of the offer and that the terms of the offer will remain the same.
''Neither the offerer nor Sinopec International currently intends to renegotiate or otherwise change the offer price of C$31.50 per Tanganyika share,'' it said.
The board of directors of Tanganyika Oil has already approved the offer made by the Chinese oil giant.
Sinopec said a notice announcing the extension of the offer is being mailed to registered holders of Tanganyika common shares, options and Swedish Depositary Receipts.