Calgary’s Equal Energy to be acquired by Petroflow in US$230M deal
Equal holds a portfolio of oil and gas properties in Oklahoma.
OKLAHOMA CITY – Oil and gas company Equal Energy Ltd. will be acquired by Petroflow Energy Corp. in a cash deal valued at US$230 million.
Equal Energy’s board has approved the sale, which gives the company US$5.43 per share, which is below Friday’s closing price of $5.74 on the Toronto Stock Exchange.
However, it was a 56% premium to the company’s trading price the day before Equal Energy said in March it was pursuing strategic alternatives.
The company says it will not to solicit any other bids, and agreed to a US$2 million break fee if it backs away from the deal – the same amount Petroflow will have to pay Equal if Petroflow backs out.
At the time, Equal said it turned down Montclair’s proposal because the US company was unwilling to wait until a special committee could consider the offer and possible alternatives.
Equal Energy holds a portfolio of oil and gas properties in Oklahoma.
Petroflow Energy Corp. and Petroflow Canada Acquisition Corp. is an exploration and production company based in Oklahoma.
©The Canadian Press