Legacy to buy Bronco Energy in a share swap dealBoys...these guys are on a buying spree....hope they don't turn into another Oilexco.
Legacy Oil + Gas to acquire Bronco Energy in a share-swap agreement
Tue Sep 7, 8:44 PM
The Canadian Press
By The Canadian Press
CALGARY - Bronco Energy Ltd. (TSX: BCF.TO) announced Tuesday it has agreed to a takeover of the company by Legacy Oil + Gas Inc. (TSX: LEG.TO) in a share-swap agreement.
No value was put on the deal. However, a company news release said Bronco shareholders would receive 0.0182 of a Legacy common share for each Bronco share, or a total of 134,424 Legacy shares based on Bronco's float of just under 7.4 million shares.
Based on Legacy's closing price of $10.99 Tuesday on the Toronto Stock Exchange — down 27 cents — those shares would be worth some $1.48 million. Bronco shares were off two cents, or 10.53 per cent, at 17 cents on the TSX.
Under the arrangement, which is subject to shareholder and other requirements, Legacy will acquire all of the six per cent convertible secured subordinated debentures of Bronco.
"The holders of the debentures will receive a cash payment of $1,100 per $1,000 principal amount of debentures, which represents a one per cent premium to face value plus interest that would have been payable to maturity," it said.
"As closing of the arrangement is expected to occur subsequent to the next scheduled interest payment on Oct. 31, 2010, Bronco intends to exercise its option to make such payment in common shares, which will be eligible for exchange into Legacy shares in the same manner as currently outstanding Bronco common shares," it said.
Meanwhile, Bronco's outstanding share purchase warrants will be cancelled for no consideration.
Bronco's assets include some 61,763 net acres of land in the Athabasca oilsands region; about 700 barrels of oil equivalent per day of production from the Wabaskaw development and a facility currently capable of processing 3,000 barrels of oil per day, scalable to 10,000 barrels per day.
It also has a potential SAGD thermal project in the Grand Rapids formation and in excess of $190 million in tax pools, including approximately $122 million in non-capital losses.