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Be the first with the news that moves the market- Oil and gas giant Canadian Natural Resources (CNQ) has completed its acquisition of fellow TSX-lister Painted Pony Energy
- Under the terms of the deal, Canadian Natural Resources wholly acquired Painted Pony for a cash consideration of C$0.69 per share, roughly $111 million in total
- The deal was backed by Painted Pony’s shareholders last week and received court approval yesterday
- The company said the acquisition complements its existing natural gas assets and offers new opportunities with significant pre-built infrastructure
- Canadian Natural Resources (CNQ) is currently up 1.31 per cent and is trading at $21.68 per share
Oil and gas giant Canadian Natural Resources (CNQ) has completed its acquisition of fellow TSX-lister Painted Pony Energy.
Under the terms of the takeover, which was announced on August 10, 2020, Canadian Natural Resources acquired all of Painted Pony’s issued and outstanding securities at a price of C$0.69 each, representing a total cash consideration of approximately $111 million.
At the time of the proposal, the purchase price represented a 30 per cent premium over Painted Pony’s 21-day volume weighted average share price.
While Canadian Natural Resources will also assume roughly $350 million in debt, the company, which is one of the largest natural gas producers in Canada, said the deal would expand its presence in the liquids-rich Montney natural gas region of northeastern British Columbia.
In a statement to the public, Canadian Natural Resources welcomed Painted Pony employees to its Northeast British Columbia and Calgary head office teams.
“The acquired production, infrastructure and land compliments Canadian Natural’s natural gas assets in key operating areas, providing opportunities to leverage synergies with a significant amount of pre-built infrastructure and transportation available,” the company added.
Painted Pony’s shareholders approved the transaction in a special meeting late last week, drawing more than 86 per cent of voter support.
The transaction then received court approval yesterday for Painted Pony to become a wholly owned subsidiary of Canadian Natural Resources.
Energy companies around the world have struggled this year with the impact of the COVID-19 pandemic, and Canadian Natural Resources is no exception. The company’s share price fell almost 73 per cent from February 20 to March 18, and has since then only managed to gain back just over one-third of that plunge.
Canadian Natural Resources (CNQ) is currently up 1.31 per cent and is trading at $21.68 per share at 12:21pm EDT.
