Alfa, Harbour Energy offer C$6.50 per share for Pacifical Rubiales Energy acquisition
06 May 2015
Pacific Rubiales Energy Corp yesterday said Mexican conglomerate Alfa Sab de CV and Harbour Energy Ltd had offered C$6.50 per share, valuing the oil and gas company at about C$2.05 billion ($2.08 billion), representing a premium of 35-per cent to Pacific Rubiales' closing price on the Toronto Stock Exchange yesterday.
Toronto-based Pacific Rubiales, the largest independent oil and gas producer in Latin America had its shares also listed in Colombia.
Pacific Rubiales said it had constituted a special committee, which had engaged an independent financial adviser to deliver a formal valuation.
Alfa, which already owned an 18.95-per cent stake in Pacific Rubiales, operates businesses in oil and gas, branded foods, aluminum auto components, petrochemicals, information technology and telecommunications services.
Harbour Energy, is a joint venture between Asian commodity trader Noble Group Ltd and US private-equity firm EIG Global Energy Partners.
Pacific Rubiales said in a press release that it had entered into exclusive discussions of an offer from Alfa, SAB de CV and Harbour Energy Ltd, whereby the companies would acquire all of the issued and outstanding common shares in the capital of the company not owned by Alfa for C$6.50 per share, subject to completion of definitive documentation and final Board approvals. The company's board has constituted a Special Committee of independent directors, which had engaged an independent financial advisor to deliver a formal valuation in accordance with applicable Canadian securities laws.
Together, Alfa and Harbour Energy have completed technical, financial and legal due diligence. Alfa and Harbour Energy have agreed with the company to work toward completion of definitive documentation expeditiously.
The contemplated transaction would be subject to a number of conditions and there can be no assurance that any transaction will be completed.
Alfa currently holds 59,897,800 Common Shares, representing approximately 18.95 per cent of the issued and outstanding Common Shares.