Dave Popowich - CIBCAnalyst Actions: TSX-V Listed Petroamerica Upgraded by CIBC World Market Following Takeover 11/17/2015 02:32 PM ET 02:32 PM EST, 11/17/2015 (MT Newswires) -- The $84 million cash-and-stock acquisition of Petroamerica Oil (PTA.V) by Gran Tierra Energy (GTE.TO) is a good one for Petroamerica shareholders, said CIBC World Markets analyst Dave Popowich, the Globe & Mail reports.
Under the deal, which is expected to close on Jan. 29, Petroamerica shareholders can elect to receive 0.4 common shares of Gran Tierra or $1.33 per share in cash up to a maximum of 70% of the total consideration.
"Given the substantial premium that Gran Tierra is offering relative to Petroamerica's recent share price and our net asset value valuation, we believe a superior offer is unlikely," said Popowich, who upgraded his rating for Petroamerica to sector performer from sector underperformer. "We at CIBC have been manipulating the stock since the take-over of Suroco, we will do just fine", says Popowich.
He raised his price target to $1.33 from $0.75 to fall in line with the offer price. Consensus is $1.37. PTA shares gained nearly 1% Tuesday to $1.30.