Calgary-based Novus Energy (
TSX:V.NVS,
Stock Forum) has entered into a definitive agreement to be taken over by Shaanxi Yanchang Petroleum Group, a Chinese firm with over 100 years of history that is considered the fourth largest petroleum company in China.
Yangchang will acquire outstanding shares at $C1.18 per Common Share, a 44% premium over one-month average list price.
The total value of the deal is C $320 million. Novus has a market cap of $202.63 million.
Yangchang Canada has been formed for the purpose of the takeover and will wholly own Novus.
The arrangement is subject to review by Chinese officials.
On December 4, 2012, Novus announced it had retained financial advisors to assist the Special Committee of the Board of Directors in exploring and evaluating a broad range of options to optimize shareholder value. The Board of Directors has unanimously approved the deal.
The board was advised by Cormark Securities and FirstEnergy Capital.
The
Novus Energy Bullboard on Stockhouse.com has consistently been one of the most viewed over the last few weeks as tension built surrounding word of a deal.
Novus Energy shares jumped $0.23 to $1.07, or 27.38%, on the news.
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