Verenex Enters Into Acquisition Agreement with CNPCI
Verenex Energy Inc. announced that it entered into a definitive agreement on February 24, 2009 whereby a wholly-owned subsidiary of CNPC International Ltd. ("CNPCI") has agreed, subject to the terms of the Agreement, to make an offer to acquire all the outstanding common shares of Verenex by way of a take-over bid (the "Offer") for C$10.00 per share in cash.
The aggregate value of this transaction will be approximately C$499 million.
The Agreement contains customary provisions prohibiting Verenex from soliciting any other acquisition proposal but allows the Verenex Board of Directors to accept and recommend a superior proposal upon payment of a break fee of C$15 million (subject to a right to match provision in favour of CNPCI).
About Verenex
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class discovered resource base and exploration portfolio in the Ghadames Basin in Libya. Under the EPSA terms for Area 47, Verenex is the operator and holds a 50% working interest in the initial 5-year Exploration Period which reduces to 25% for any commercial developments retained in a subsequent 25-year Exploitation Period. These working interest levels reflect the Company's required share of capital funding during the periods. In any commercial development scheme, Verenex would fund 25% of capital expenditures and 6.85% of operating costs and receive an initial production allocation (free of all taxes and royalties) of 6.85%. A more complete description of the Area 47 contract terms is included in the Company's various filings on www.sedar.com.
The aggregate value of this transaction will be approximately C$499 million.
The Agreement contains customary provisions prohibiting Verenex from soliciting any other acquisition proposal but allows the Verenex Board of Directors to accept and recommend a superior proposal upon payment of a break fee of C$15 million (subject to a right to match provision in favour of CNPCI).
About Verenex
Verenex is a Canada-based, international oil and gas exploration and production company with a world-class discovered resource base and exploration portfolio in the Ghadames Basin in Libya. Under the EPSA terms for Area 47, Verenex is the operator and holds a 50% working interest in the initial 5-year Exploration Period which reduces to 25% for any commercial developments retained in a subsequent 25-year Exploitation Period. These working interest levels reflect the Company's required share of capital funding during the periods. In any commercial development scheme, Verenex would fund 25% of capital expenditures and 6.85% of operating costs and receive an initial production allocation (free of all taxes and royalties) of 6.85%. A more complete description of the Area 47 contract terms is included in the Company's various filings on www.sedar.com.
quoted from: www.newkaznak.com
