Sign Up for FREE Daily Energy News
CDN NEWS  |   US NEWS  | TIMELY. FOCUSED. REVELANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • instagram
  • youtube2
BREAKING NEWS:
Copper Tip Energy Services
WEC - Western Engineered Containment
Hazloc Heaters
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Obsidian Energy shareholders approve stock issuance in pursuit of Bonterra takeover


CALGARY — Obsidian Energy Ltd. says shareholders have voted to approve its proposal to issue up to 72.3 million shares to buy Bonterra Energy Corp. in a hostile takeover.

The Calgary-based oil and gas producer says 91.4 per cent of the shares represented at a special meeting on Monday were voted in favour of the deal announced in August, but strongly resisted since by the takeover target.

Last week, shareholder advisory firm Glass Lewis recommended investors support management in pursuing Bonterra because it would create a company with a stronger balance sheet and the ability to grow through acquisitions.

But it added in a report the deal has "almost no practical likelihood of being successful'' because of opposition by the Bonterra board and from more than 30 per cent of Bonterra shareholders.

The takeover, first proposed in August, is open until Jan. 4 and offers two Obsidian shares for each Bonterra share. It requires approval by holders of more than two-thirds of Bonterra's stock to be successful.

On Monday, Bonterra shares closed at $1.68, more than three times the closing stock price of 50 cents for Obsidian.

Bonterra has dubbed the Obsidian offer a "take-under bid'' based on relative stock prices.

This report by The Canadian Press was first published Nov. 23, 2020.

Companies in this story: (TSX:BNE, TSX:OBE)

The Canadian Press



Share This:



More News Articles


New SHOWCASE Directory Companies

 

The Coverall Shop
Muddy Boots
Axis Communciations
Delta Remediation Inc.
Payload Technologies Inc.
Smart-Project Management Inc. / Trusted Pipeline Advisor
Vista Projects Limited
Di-Corp