21st Mar 2016 07:52
LONDON (Alliance News) - Bankers Petroleum Ltd on Monday said it has agreed to be bought for CAD575.0 million by two companies with connections to a large Chinese firm.
The oil company operating in Albania said it has entered into the agreement with 1958082 Alberta Ltd and Charter Power Investment Ltd, which are both affiliates of Geo-Jade Petroleum Corp, "one of the largest independent oil and gas exploration and production companies in China," Bankers said.
"The proposed transaction provides Bankers with the opportunity to return value to our shareholders at a significant premium to the current market valuation, while offering Bankers added financial resources to accelerate our activity in Albania and capitalize on the potential created by the current commodity price environment," said David French, Bankers president and chief executive.
"This transaction will generate substantial economic benefit for Albania and the local communities in which Bankers operates. We look forward to working alongside our new investors to deliver the asset possibilities before us," he added.
The CAD2.20 price per share represents a premium of 98% over Bankers' closing share price on the Toronto Stock Exchange last Friday. The transaction will be effected by way of a plan of arrangement, which has been unanimously backed by the board, and Bankers said the deal values the company at around CAD575.0 million. The stock was last quoted in London at 60.00 pence.
Bankers said the deal brings a "considerable new investment focus" to the company's portfolio of assets.
"Following a successful transaction, the purchaser will support the Bankers' leadership and employee base to capitalize on the experience and depth of the Bankers team. The purchaser plans to realize the joint vision of both companies to grow the business with enhanced investment into its Albanian operations, while concurrently focusing on growth opportunities in the global marketplace," said Bankers.
By Joshua Warner; [email protected]; @JoshAlliance
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