Pace Oil & Gas Ltd. (TSX:PCE) entered into a letter of intent to acquire AvenEx Energy Corp. (TSX:AVL) from Clarke Inc. (TSX:CKI) and other shareholders for approximately CAD 140 million in stock on November 27, 2012
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Does anyone have any info on the deal above that was brewing prior to this merger or why Clake's shareholders knew more that we did. (Maybe I just missed reading it?)
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From Clarks Q3 Report:
Avenex Energy Corp. (“Avenex”) 4,500,000
Summary of Investee Performance
Avenex continues to be negatively affected by lower natural gas prices and lower production volumes as it shifts its production
from natural gas to oil. Avenex’s liquefied petroleum gas marketing and logistics segment partially offsets the results in the oil
and gas segment and is expected to support Avenex’s current dividend level. Clarke believes Avenex is sufficiently capitalized
to wait out the current period of low natural gas prices and will benefit as prices return to more normalized levels. While we
wait, the shares continue to offer an excellent yield. Subsequent to the end of the quarter, Avenex announced they have
initiated a process to maximize the value of its oil and gas assets. If this process is successful, we expect Avenex would initiate
a similar process for its marketing and logistics segment, essentially pursuing a controlled liquidation of the company. This
would be positive for shareholders as we believe Avenex’s shares trade at a discount to the company’s sum-of-the-parts
valuation.