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Condor Petroleum (TSX:CPI) has entered an agreement to acquire Marsa Energy (TSXV:MEP). The companies stated that the move will “create a well-capitalized company with significant exploration and development assets.”
Condor Petroleum (TSX:CPI) has entered an agreement to acquire Marsa Energy (TSXV:MEP). The companies stated that the move will “create a well-capitalized company with significant exploration and development assets.”
As quoted in the press release:
Pursuant to the Arrangement Agreement, all of the issued and outstanding common shares of Marsa (Marsa Shares) will be exchanged for common shares of Condor (Condor Shares) based on an exchange ratio of 1.84326 Condor Shares for each Marsa Share held. Based on Condor and Marsa’s respective 20-day volume-weighted average trading prices, this represents a 53.7% premium to Marsa’s 20-day volume-weighted average trading price. Former holders of Marsa Shares (Marsa Shareholders) will hold 20% of the total issued and outstanding Condor Shares immediately following completion of the Arrangement.
Condor president and CEO, Don Streu, said:
This acquisition is compelling for Condor, delivering significant strategic, financial and operational benefits by providing near term sustainable cash flow and additional long-term growth potential for the Company and shareholders alike. Leveraging off Condor’s strong balance sheet to bring Marsa’s Poyraz Ridge discovery to market and combining the highly prolific prospect inventories should add significant shareholder value over the coming years.
Click here for the full press release.