GREY:WFREF - Post by User
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Samdmon Dec 22, 2015 11:23am
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Post# 24404773
@ 37 cents it is a 37% gain SINOENERGY
@ 37 cents it is a 37% gain SINOENERGY The Globe and Mail reports in its Tuesday, Dec. 22, edition that a group of Chinese investors has agreed to acquire Long Run Exploration (37 cents) for about $100-million, plus debt. The Globe's Jeffrey Jones writes that under the agreement, the unnamed acquirers would pay a hefty premium for Long Run's shares, but debentureholders would get just 75 cents on the dollar. The transaction must be approved by both equity and debtholders. Long Run shares are trading well below the 52-cent-a-share bid, reflecting investor fears the offer could be rejected despite the prospect of an end to the company's financial struggles. Chief executive officer Bill Andrew says: "I think it's a good outcome. It's obviously not the best but we're where we are with commodity prices." He says, "Our timing got off on a couple of acquisitions last year and put us into this situation, so I think it was the best result we could get." Long Run did not name the buyers, saying only that they are based in the People's Republic of China and have extensive experience in oil and gas around the world. Unnamed sources suggest the buyer is Sinoenergy Pacific, which purchased privately owned New Star Energy in the summer.