ExxonMobil Set to Buy Celtic Exploration for C$3.1 Billion

ExxonMobil Corp. (NYSE:XOM) and Celtic Exploration Ltd. (TSX:CLT) announced that a subsidiary of ExxonMobil Canada Ltd. will buy all Celtic’s outstanding common shares at a cash price of C$24.50 a share. The acquisition as a whole is valued at about $3.1 billion.

According to the press release, highlights of the transaction include:

• Cash price is C$24.50 per Celtic share
• Celtic shareholders also receive 0.5 of a share of a new company to be led by Celtic’s current management team
• Transaction has received the unanimous approval of Celtic’s Board of Directors

Based on the cash consideration (not including the value of Spinco shares), the transaction price represents a premium of 35% over Celtic’s closing share price on the Toronto Stock Exchange of C$18.12 on October 16, 2012, and 34% over Celtic’s 30-trading day volume weighted average trading price of C$18.28 per share ending on October 16, 2012.

Click here to read the full ExxonMobil Corp. (NYSE:XOM) and Celtic Exploration Ltd. (TSX:CLT) press release.