ExxonMobil to acquire Canadian oil and gas company Celtic Exploration for $3.1 billion
17 Oct 2012
ExxonMobil Corp, the world's largest oil and gas company, today said that it would buy Canadian oil and gas company Celtic Exploration Ltd, in a deal valued at about C$3.1 billion ($3.1 billion).
ExxonMobil Canada, a subsidiary of the Houston-based oil giant, will pay C$24.50 per share and half a share of a newly established company, which will hold assets not included in the deal with ExxonMobil Canada.
The offer is a 35-per cent premium to Celtic's closing price on the Toronto Stock Exchange yesterday.
All the officers and directors of Celtic, holding around 17.5 per cent stake, have entered into lock-up agreements with ExxonMobil Canada and have agreed to tender their shares to the offer.
As part of the agreement, Calgary, Alberta-based Celtic will consider and accept a superior competing proposal and ExxonMobil Canada has the right to match the offer. The deal also provides for a C$90.0 million termination fee to be paid by Celtic in certain circumstances if the transaction is not completed.
The assets not included in the deal are the acreage in the Inga area in British Columbia, the Grande Cache area in Alberta and interests in oil and gas properties located in Karr, Alberta.