- Tenaz Energy Corp. (TNZ) has terminated the proposed acquisition of SDX Energy Plc
- Tenaz is an energy company focused on international oil and gas assets
- SDX’s shareholder’s meeting did not meet the required 75 per cent approval rate for the transaction
- Due to this, Tenaz will not have its special meeting of shareholders this afternoon
- Tenaz now has roughly $40 million which will be put towards a normal course issuer bid
- Tenaz Energy Corp. (TNZ) is up 14.12 per cent trading at $2.02 per share as of 3:22 p.m. ET
Tenaz Energy Corp. (TNZ) has terminated the proposed acquisition of SDX Energy Plc.
Tenaz is an energy company focused on the acquisition and sustainable development of international oil and gas assets.
According to Tenaz, SDX announced the results of its shareholders meeting this morning which reviewed the scheme of arrangement to amalgamate Tenaz and SDX. As a percentage of issued and outstanding SDX shares, 20.20 per cent voted in favour with 21.60 per cent against the scheme. The agreement needed a 75 per cent approval rate.
As of today, approximately 43 per cent of the issued and outstanding shares of Tenaz had been voted related to the proposed combination. Allegedly 99.99 per cent were in favour of the resolution. However, due to the SDX vote, Tenaz will no longer hold its special meeting of shareholders scheduled for this afternoon.
Consequently, the company stated the share issuance resolution will not come into effect.
Tenaz believes its ownership of a simple majority of shares would result too many disadvantages compared to its original plan. It stated that SDX would likely continue to exist as a separate corporate entity with a sizable minority interest.
Due to the termination, Tenaz stated it has freed up roughly $40 million which was held in escrow for the SDX transaction. Tenaz will now move forward with an application for a normal course issuer bid program.
Tenaz Energy Corp. (TNZ) is up 14.12 per cent trading at $2.02 per share as of 3:22 p.m. ET.