Crescent Point buying Cutpick Energy for $425M
Crescent Point Energy plans to acquire privately held Cutpick Energy in a deal valued at $425 million, including the assumption of $83 million net debt.
CALGARY: Crescent Point Energy Corp. plans to acquire privately held Cutpick Energy Inc. in a deal valued at $425 million, including the assumption of $83 million net debt.
Under the arrangement, Crescent point will acquire all of the outstanding common shares of Cutpick on the basis of 0.14 of a Crescent Point common share for each outstanding Cutpick share.
The price, based on a five-day weighted average trading price of $43.13 per Crescent Point share, reflects a value of $6.04 for each Cutpick share, Cutpick said in a release.
The Cutback board has unanimously approved the arrangement and directors and officers of Cutpick representing approximately 29% of the company’s outstanding shares have agreed to vote in favour of the deal at a shareholders meeting scheduled for June 19.
In the event the arrangement does not proceed, both companies have agreed to a reciprocal non-completion fee of $15 million under certain circumstances.
Alberta-based Cutback is engaged in an oil and gas exploration, development and production, with a focus on the exploitation of its Viking light oil resource lands in the Halkirk area of Alberta.
Crescent Point is a conventional oil and gas producer with light and medium oil and natural gas reserves in Canada and the United States.
© 2012 The Canadian Press