- International Petroleum Corporation (IPCO) has announced the results of its substantial issuer bid
- The company will purchase 8,258,064 of its common shares for cancellation at a purchase price of C$15.50 per share
- The Canadian depositary will return all shares tendered and not purchased
- International Petroleum Corp is a Canada-based oil and gas exploration and production company
- International Petroleum Corporation (IPCO) opened trading at $13.38
International Petroleum Corporation (IPCO) has announced the results of its previously announced substantial issuer bid.
The company will purchase 8,258,064 of its common shares for cancellation at a purchase price of C$15.50 per share, for an aggregate purchase price of approximately $128 million.
Shares to be purchased under the offer represent approximately 5.5 per cent of the issued and outstanding shares as at May 16, 2022, the date the offer began. Immediately following completion of the offer, there will be 142,707,949 shares issued and outstanding.
Mike Nicholson, IPC’s Chief Executive Officer, commented on the bid.
“We are very pleased to have concluded our first substantial issuer bid in line with our capital allocation framework to materially increase returns to shareholders in a higher oil price environment. IPC will be returning US$100 million to participating shareholders, with our remaining shareholders benefiting from the cancellation of the repurchased shares. We now intend to continue to distribute value to our shareholders by restarting our normal course issuer bid that has been on hold pending completion of the offer.”
A total of 8,815,989 shares were validly deposited to the offer. Payment for the shares accepted for purchase will occur in accordance with the terms of the offer. As the offer was oversubscribed, shareholders who made auction tenders at a price of $15.50 or less per share and purchase price tenders are expected to have between approximately 93.7 per cent and 94.7 per cent of their successfully tendered shares purchased by IPC. The Canadian depositary will return all other shares tendered and not purchased.
International Petroleum Corp is a Canada-based oil and gas exploration and production company with a portfolio of production assets and development projects in Canada, Malaysia and France.
International Petroleum Corporation (IPCO) opened trading at $13.38.
