Crescent Point buying Cutpick Energy for $425M, st CALGARY - Crescent Point Energy Corp.(TSX:CPG.TO - News) plans to acquire privately held Cutpick Energy Inc. in a deal valued at $425 million, including the assumption of $83 million net debt.
Under the arrangement announced Thursday, Crescent point will acquire all of the outstanding common shares of Cutpick on the basis of 0.14 of a Crescent Point common share for each outstanding Cutpick share.
The price, based on a five-day weighted average trading price of $43.13 per Crescent Point share, reflects a value of $6.04 for each Cutpick share, Cutpick said in a release.
The Cutback board has unanimously approved the arrangement and directors and officers of Cutpick representing approximately 29 per cent of the company's outstanding shares have agreed to vote in favour of the deal at a shareholders meeting scheduled for June 19.
In the event the arrangement does not proceed, both companies have agreed to a reciprocal non-completion fee of $15 million under certain circumstances.
Alberta-based Cutback is engaged in an oil and gas exploration, development and production, with a focus on the exploitation of its Viking light oil resource lands in the Halkirk area of Alberta.
Crescent Point is a conventional oil and gas producer with light and medium oil and natural gas reserves in Canada and the United States.