2 Canadian Juniors Merge into Single Mid-size Company
First Published Friday, 10 July 2009 02:30 am - © 2009 Need to Know News
In a sign of the times, two junior natural gas explorers/producers are merging into a single mid-level company. ProEx Energy will acquire Progress Energy in a stock swap deal, according to a statement this morning.
The boards of both companies are recommending stockholders vote in favour of the deal. Voting will be held in mid-January 2009.
"We believe this is a win-win for two successful companies and their respective securityholders," said Michael Culbert, Progress president and CEO, in a statement
The combined company plans to pay a dividend of about C$0.40/share per year, beginning April 2009.
Together they have a combined enterprise value of about C$2.4bln, based on closing prices on the TSX last week, with a proven and probable reserve base of 816bln cubic feet of natural gas and 15.4mln barrels of liquids, or a combined 152mln boe.
