Pacific Rubiales get takeover offer

[Tree]

$6 bil Canadian - for real...

Huh, the largest shareholder is an activist.

Ring Ring Ring

[Gator]

May 5 (Reuters) - Pacific Rubiales Energy Corp :
* Confirms offer and exclusive discussions
* Has entered into exclusive discussions in respect of an offer from alfa,
s.a.b. de c.v. ("alfa") and harbour energy ltd
* Alfa, harbour energy would acquire all issued and outstanding common shares
not owned by alfa for C$6.50 per share
* Proposed deal would be subject to a number of conditions and there can be no
assurance that any transaction will be completed

[Gator]

The market cap of PRE is $1.5 Billion Canadian today before this announcement . That's up 4 fold if its correct and goes through.

You need to consider the debt, not just the market cap.  The offer is $6.5C or a 34% premium to yesterdays close.  Dec 31, 2014 PRE-T closed at $7.19C

[Gator]

May 6 (Reuters) - Pacific Rubiales Energy Corp said Mexican conglomerate Alfa Sab de CV and Harbour Energy Ltd have offered C$6.50 per share, valuing the oil and gas company at about C$2.05 billon ($2.08 billion). The offer represents a premium of 35 percent to Pacific Rubiales' closing price on the Toronto Stock Exchange on Tuesday. Reuters reported on Tuesday that Alfa and Harbour Energy have agreed to acquire Pacific Rubiales for C$6 billion ($4.97 billion), including debt.  Toronto-based Pacific Rubiales is the largest independent oil and gas producer in Latin America and its shares are also listed in Colombia. Pacific Rubiales constituted a special committee, which has engaged an independent financial adviser to deliver a formal valuation, it said. Alfa, which already owns an 18.95 percent stake in Pacific Rubiales, has businesses in oil and gas, branded foods, aluminum auto components, petrochemicals, information technology and telecommunications services. Harbour Energy is a joint venture between Asian commodity trader Noble Group Ltd and U.S. private-equity firm EIG Global Energy Partners. ($1 = 1.2035 Canadian dollars)

[Gator]

(Reuters) - Mexican conglomerate Alfa Sab de CV
and Harbour Energy Ltd have agreed to acquire
Canadian oil and gas company Pacific Rubiales Energy Corp
for C$6 billion ($4.97 billion), including debt, a
person familiar with the matter said on Tuesday.
Pacific Rubiales is the largest independent oil and gas
producer in Latin America. Its shares have plummeted more than
80 percent since oil prices began to slide last summer.
Alfa, which already owns a 20 percent stake in the company,
decided now was the time to act, and on vastly improved terms
than when it paid C$21 per share last August in a C$189.4
million transaction to raise its stake in the company to 17
percent.
Toronto-listed Pacific Rubiales, whose shares also trade in
Colombia, suspended trade in its Bogota shares on Tuesday
afternoon after the deal was made public.
Alfa and Harbour have agreed to pay around C$6 ($5) per
share for Pacific Rubiales and will each own half of the
company, that source said, asking not to be identified because
the deal is not yet public. Pacific Rubiales ended trading on
Tuesday at C$4.83.
Harbour Energy is a joint venture between Asian commodity
trader Noble Group Ltd and U.S. private-equity firm
EIG Global Energy Partners.
Alfa believes the investment, by boosting its oil and gas
footprint, will position it to participate more strongly in
Mexico's energy liberalization, the person added.
Representatives for the companies did not immediately
respond to requests for comment.
Toronto-Based Pacific Rubiales produces natural gas and
crude oil at 90 exploration and production blocks in seven
countries; Colombia, Peru, Guatemala, Brazil, Guyana, Papua New
Guinea and Belize.
The company is the second-biggest oil producer in Colombia
with output of about 145,000 barrels per day. However, it is set
to lose about 65,000 barrels per day of that in mid-2016 when
its contract to operate state-run Ecopetrol's Rubiales
field expires.
Alfa, headquartered near Monterrey, Mexico, has businesses
in oil and gas, branded foods, aluminum auto components,
petrochemicals, information technology and telecommunications
services. It has a market capitalization of 164.7 billion
Mexican pesos ($10.6 billion).
Bank of America Corp advised Pacific Rubiales on the
deal.

[jft310]

Ah more information comes out . Appears I pulled an old stock quote . If this deal proceeds hard to see a way the PNG assets are influenced in anyway until this takeover issue is resolved . Such a small position would not be the hot potatoe for the new owners it appears.

[Palm]

Facts are friendly

[Getitrt2]

Good point; could be. May see it as something to let ride if they can and see if it ends up being something that feeds PNG LNG near term. If not, it sits for a good time and demands cash from cash calls.

Yeah, Palm, and if I remember correctly, those cash calls are 25 or 35%, at least for some period of time, and that includes Raptor, right?  Civelli probably got IOC what at the time was a good deal for his big commission. Hopefully, it could turn out eventually to be a good deal for PRE also.