• 15 mins Is A Russia-Cuba Energy Deal In The Works?
  • 3 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 4 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 5 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 7 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 10 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
World Bank To Cut Off Oil & Gas Funding

World Bank To Cut Off Oil & Gas Funding

In accordance with the Paris…

Why Is Canadian Oil So Cheap?

Why Is Canadian Oil So Cheap?

Reduced pipeline capacity and bottlenecks…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Canada’s Pembina To Buy Veresen In US$7.1B Deal

Pipeline

Pembina Pipeline Corporation is offering to buy Veresen Inc in a deal valued at around US$7.1 billion (C$9.7 billion), including Veresen’s debt and preferred shares, the two Canadian companies said in a joint statement on Monday, adding that the transaction would create an energy company with a pro-forma enterprise value of around US$24.14 billion (C$33 billion).

Under the terms of the arrangement agreement, Pembina is offering to acquire all of the outstanding Veresen common shares in exchange for either 0.4287 of a common share of Pembina or US$13.64 (C$18.65) in cash. The offer represents a 22.5-percent premium to Veresen’s closing share price as of Friday, April 28.

The deal – unanimously approved by the board of directors of the two companies – is subject to a number of closing and customary conditions and regulatory approvals, including the approval of at least 66 percent of holders of Veresen’s common shares. The deal is expected to close late in the third quarter or early in the fourth quarter this year, the companies said.

If the deal goes as planned, upon completion, Pembina’s shareholders will hold around 80 percent of the combined company, and Veresen’s shareholders are expected to own the other 20 percent.

The company resulting from the acquisition will have a strong position in the Western Canadian Sedimentary Basin (WCSB), with Pembina assets primarily located in the Deep Basin, Duvernay, and Alberta Montney complemented by Veresen’s position in the B.C. Montney. The combined company will own around 5.8 billion cubic feet per day (net) of gas processing infrastructure across the WCSB by 2018.

Related: Saudis To Boost Oil Export Capacity To 15 Million Bpd In 2018

“It represents an ideal opportunity to continue building on our respective low-risk, long-term, fee-for-service business models while growing and substantially diversifying our respective asset bases,” Randy Findlay, Pembina’s Chair of the Board of Directors, said in the press release, commenting on the deal. “Combined, these factors give us confidence to increase our dividend by 5.9 percent upon close of the Transaction,” Findlay noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News