1st May 2014 13:16
LONDON (Alliance News) - Caracal Energy PLC Thursday said Glencore Xstrata PLC had increased its stake in Caracal to 13.82%, from 12.35% previously, after acquiring a further 2.2 million shares.
Earlier this week Glencore, which is buying Caracal, acquired 4.2 million Caracal shares at a price of 550 pence per share, increasing its total shareholding in the firm to 18.9 million shares or 12.35%, assuming the conversion of Glencore's USD40 million principal amount of Caracal convertible bonds due September 2017. The company now holds 21.2 million Caracal shares.
On April 14, Glencore reached a deal to acquire Caracal Energy for 550 pence a share, or about GBP808.5 million in cash, ending Caracal's proposed merger with Transglobe Energy Corp and giving Glencore new oil and gas assets in Africa.
At the time, Caracal, which operates in Chad, said it had unanimously approved the arrangement and concluded that it is in the best interests of the company. It said it would pay the USD9.3 million termination fee to end its proposed merger with Transglobe Energy Corp as the Glencore deal represents a superior proposal.
Glencore said the deal is expected to close in the second quarter of 2014 and represents a 61% premium to Caracal's 342 pence closing share price on April 11 and a 54% premium to the 357 pence volume-weighted average price of the shares in the 30 trading days leading up to the announcement.
Caracal shares were trading up 0.9% at 543.50 pence Thursday, while Glencore shares were down 0.6% at 316.65 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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