29th Apr 2014 08:43
LONDON (Alliance News) - Caracal Energy Inc said Glencore International AG, a subsidiary of Glencore Xstrata PLC, acquired 4.2 million shares in Caracal at a price of 550 pence per share on Monday, ahead of its planned takeover.
Caracal, which operates in Chad, said Glencore's acquisition brings its total holding in the company 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.
On April 14, Glencore reached an agreed 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 said that it has 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 up 0.4% to 544.50 pence, while Glencore shares were down 0.2% to 311.80p in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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