Montclair Energy, LLC announces proposal to purcha Been almost 3 months since the initial announcement. Believe there is a standstill agreement that was put in place to allow Montclair to examine data - this should be expiring at some point in the near future.
Montclair Energy, LLC announces proposal to purchase Equal Energy Ltd.
BIRMINGHAM, AL, March 25, 2013 /CNW/ - Montclair Energy, LLC ("Montclair") announced today that it delivered a letter to the Board of Directors of Equal Energy Ltd. (NYSE: EQU; TSX: EQU) ("Equal Energy") on February 27, 2013 in which Montclair proposed to acquire all of the current outstanding shares of common stock of Equal Energy for $4.00 per share in cash and in subsequent conversations, confirmed that the $4.00 share price would also apply to Equal Energy managements' restricted shares as well. The price offered for Equal Energy represents a 28% premium over the 20 day volume weighted average price of Equal Energy's common shares on the New York Stock Exchange for the 20 trading day period preceding the date of Montclair's letter. In the letter, Montclair advised Equal Energy's board that it is prepared to expeditiously proceed in a process that leads to a definitive agreement.
W. Cobb Hazelrig, Chief Executive Officer of Montclair, stated "Montclair's proposal would provide shareholders of Equal Energy with a unique and attractive opportunity to receive a substantial premium for their Equal Energy shares. Although we expect that Equal Energy shareholders would welcome this proposal, Montclair was advised on March 15, 2013 that the Board of Directors of Equal Energy had rejected our proposal."
At this time, Montclair intends to identify and evaluate all of its strategic options which may include nominating a slate of independent directors for election to the Equal Energy Board of Directors at the upcoming annual meeting or alternatively, at a special meeting of the shareholders requisitioned by Montclair, and to have further discussions with Equal Energy's management. Montclair is not currently engaged in a solicitation of proxies or consents from the stockholders of Equal Energy.
Mr. Hazelrig added, "While our goal is to reach a negotiated transaction with Equal Energy, we have determined that Equal Energy shareholders should be informed of our interest in an acquisition such that they can consider for themselves whether our proposal should be pursued by the company."