Pacific Rubiales said that it has entered into exclusive talks in respect of an offer from Alfa and Harbour Energy whereby they would acquire all of the issued and outstanding common shares in the capital of the company for a price of C$6.50 per share.
The company’s Board has constituted a special committee comprised of independent directors, which has engaged an independent financial advisor to deliver a formal valuation in accordance with applicable Canadian securities laws, Pacific Rubiales said in a statement.
The acquisition cost could amount to C$6 billion, including debt.
Together, Alfa and Harbour Energy have completed technical, financial and legal due diligence. Alfa and Harbour Energy have agreed with the company to work toward completion of definitive documentation expeditiously.
Alfa currently holds 59,897,800 common shares in Pacific Rubiales, representing approximately 18.95% of the issued and outstanding common shares.
1 CAD = 0.830634 USD
Image: Pacific Rubiales