NAL Energy Corporation T.NAE

NAE Taken Out

[d80jcrant]

Pengrowth to buy NAL Energy for C$1.9 bln

March 23 (Reuters) - Canadian oil and gas producer Pengrowth Energy Corp will buy NAL Energy Corp in a deal valued at about C$1.9 billion ($1.90 billion), including debt, to add light oil assets.

NAL shareholders will receive 0.86 of a Pengrowth share for each share held.

[Al42]

Wow..not much of a premium here!! Not that good of a deal here for me. My average cost on NAL is just over 9 bucks, so at 8.50 or so this will not make me happy.

[lilswede]

 $8.56/share, i hope someone else comes along and offers more....where are the chinese when you need them?

[d80jcrant]

As a shareholder I will reject this. I usually dont vote but in this case I will

[themangokid]

i think of this as more of a merger than anything else.  did EME get much of a premium when they merged with tbe? I cant remember and am too lazy to look up.  here is what I wrote on the pgf board:   makes total sense. what surprises me a little is pgf is gonna make this happen using their shares as currency.  good move I think for pgf as it largely preserves the one billion

[Al42]

Initially my first reaction was not very good but now looking at this it makes alot of sence. Both NAE and PGF are trading at aprox. the same multiples and now we will be a much stronger company with a better balance sheet and back to a 84 cent dividend. What's not to like about this deal?

[lightning99]

this deal is terrable if your a holder of NAL... PGF has to do something drastic to get thier spending under control thier Payout ratio is 146%.. and 113% including the drip, which still dilutes the share holder.. maybe with this aquisition it will lower it by a point or 2 as NAL's POR was 99% and 93% including drip. they will either have to cut div... or cut capex or take on debt or dilute

[themangokid]

i'm not advocating buying, selling or holding. its none of my business or concern.  but I dont understand if you liked nal before, how you dont like the combined entity of pgf and nal together?  nal has a lot of great properties but maybe lacking in execution and financial flexibility. pgf has a ton of room on their banklines and several pretty exciting development projects that are

[pjn0987654321]

"see what everyone else thinks."   I doubt the NAE share price was ever going back to where it was in the glory days.  In particular, I doubt it was ever going back to where I'd bought in!  But PGF might have enough upside potential to clear my losses, if the analysts get onboard and upgrade it, and if the big investors like it.  So I'll probably go along with

[DMR001]

I, too, have an average cost on NAE that is higher than the take out price. I hope the merged company results in major share apprciation of the PGF shares which I don't currently hold.

[lightning99]

I liked NAL because I felt they would at the very least maintain thier div first and foremost... That would give me downside protection.  so to me this is low risk because management had made the tough decision by cutting the div and spending within thier means.  PGF has yet to lear that lesson IMHO as I said in my earlier post. this deal is terrable if your a holder of NAL... PGF has to

[greenhawk]

Not really unhappy. I own more of Nal than PGF and like everyone else would have liked a higher premium and a cash deal. However it looks like the sum of the parts will be worth more, in the end, than the parts. If the ananlyst see it that way over the next few days PGF and NAL should both appreciate, My biggest problem and I suspect many other  ( including fund managers)  is that this

[moloko]

so if I have 3000 shares of Nal I will receive 2580 shares of PGF and my yearly dividend income will increase from $1800 to $2167  ??   pretty sure that's what's going to happen. I guess the danger is that PGF will decrease it's dividend?  but would they be buying a company if they were in danger of doing that?

[moloko]

my average cost is $11 so this kinda sucks. I was so excited when i first saw the news, then disapointed when i saw the premium. I was hoping I had another Daylight on my hands

[auwhore2]

Not the best deal for Nal s/h's but if you sell now you risk a potential second suitor coming in.   However, if you are under water on Nal and have a bunch of other capital gains you could sell your Nal now to crystallize your loss and buy back Pgf. I disagree with whoever said to just take the offer as you will be getting a higher payout on the div.  With that comes a much greater