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Published: Wednesday August 29, 2012 MYT 5:11:00 PM
Updated: Wednesday August 29, 2012 MYT 5:21:46 PM

Petronas gets Progress Energy shareholders' nod for acquisition

By Joseph Chin


KUALA LUMPUR: Canada's Progress Energy Resources Corporation's shareholders have given their approval for Petroliam Nasional Bhd to acquire the company for C$22 a share.

Progress Energy said on its website late Tuesday the shareholders had approved the acquisition of the company by Petronas Carigali Canada Ltd under a plan of arrangement.

"Under the arrangement, holders of common shares will receive C$22 in cash per common share held," it said.

Progress Energy agreed in late June to a C$4.8bil takeover by Petronas after rejecting two acquisition proposals from a "multi-national oil company" that it said didn't appropriately value the Canadian gas producer, according to a July 20 regulatory filing.

Progress Energy said the arrangement was approved by about 99.85% of the votes cast by Progress shareholders present or represented by proxy at the special meeting of security holders.

The arrangement was also approved by about 99.99% of the principal amount of the 2014 Debentures and 99.98% of the principal amount of the 2016 Debentures voted on the Arrangement resolution.

“Assuming an effective date of Sept 25, 2012, the cash consideration under the Arrangement for each C$1,000 principal amount of debentures, excluding accrued interest and notional interest, is approximately C$1,265 for the 2014 Debentures and C$1,213 for the 2016 Debentures,” it said.

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