InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal.
Shares of InterOil dropped 5.8% to $45.75 in Friday trading. Exxon shares slipped 0.1% to $83.57.
The Court of Appeal of Yukon upheld the appeal lodged by Phil Mulacek and overturned the Supreme Court of Yukon’s approval of the pending transaction with Exxon on Oct. 7. InterOil said it believes the current agreement “represents compelling value for all InterOil shareholders” and InterOil and ExxonMobil are considering the ruling and determining a different path.
InterOil Seeks New Path to Exxon Deal After Yukon Approval Overturned
Phil Mulacek, InterOil shareholder, had objected to transaction
InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal.
Shares of InterOil dropped 5.8% to $45.75 in Friday trading. Exxon shares slipped 0.1% to $83.57.
The Court of Appeal of Yukon upheld the appeal lodged by Phil Mulacek and overturned the Supreme Court of Yukon’s approval of the pending transaction with Exxon on Oct. 7. InterOil said it believes the current agreement “represents compelling value for all InterOil shareholders” and InterOil and ExxonMobil are considering the ruling and determining a different path.
Exxon Mobil won a bidding war to buy U.S.-listed InterOil for an estimated $2.5 billion after Oil Search Ltd. dropped out of the process in late July.
The boards of Exxon and InterOil unanimously approved terms of the $45-a-share agreement that has the potential for an additional cash payment. At the time, the deal was expected to close in September, subject to shareholder and regulatory review.
