Bankers Petroleum announces corporate transaction extension
CALGARY, July 30, 2016 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce that it has finalized an extension for the corporate transaction with affiliates of Geo-Jade Petroleum Corporation ("Geo-Jade") pursuant to an arrangement agreement dated March 19, 2016 (the "Arrangement Agreement"). The Arrangement Agreement provides that Geo-Jade will acquire all the issued and outstanding common shares of Bankers ("Bankers Shares") through its affiliates at a cash price of C$2.20 per Bankers Share.
Completion of the transaction remains subject to the regulatory approval of the Chinese State Administration of Foreign Exchange ("SAFE"). Accordingly, the deadline to receive the People's Republic of China approvals has been extended to September 30, 2016. In exchange for this extension, Geo-Jade agreed (as of July 29, 2016, being the date of the amending agreement) that failure to receive the SAFE approval by September 30, 2016 would entitle Bankers to the US $20 million reverse termination fee should Bankers terminate the Arrangement Agreement due to such failure. In addition, the parties agreed to extend the outside date for the transaction to October 31, 2016 to provide sufficient time to close the transaction provided that, in certain circumstances, the outside date can be shortened to September 30, 2016.
Following successful completion of the transaction, Bankers Shares will be delisted from the Toronto Stock Exchange ("TSX") and the AIM market of the London Stock Exchange.