Pacific Rubiales Energy said that, at the request of Alfa and Harbour Energy, it has agreed to terminate the takeover arrangement agreement entered into between the parties on May 20.
The arrangement agreement contemplated a plan of arrangement pursuant to which Alfa and Harbour Energy would have acquired all of the outstanding common shares of the company not already owned by Alfa or held by Pacific Rubiales in treasury for cash consideration of C$6.50 per share and including the assumption of the company’s debt, the company said in a statement.
After receiving the C$6.50 per share offer, an independent committee of the Board of Directors provided an analysis and recommendation. The arrangement agreement will terminate with immediate effect.
Pacific Rubiales said that it will continue with its plans to reduce operating costs, divest non-core assets, reduce debt, and continue to pursue Mexico energy opportunities with its preferred joint venture partner Alfa.
1 CAD = 0.786164 USD
LNG World News Staff; Image: Pacific Rubiales