Coastal Energy Co. (TSX:CEN) (AIM:CEO) has entered into a definitive merger agreement providing for the acquisition by Compañia Española de Petroleos, SAU (CEPSA) of all of the issued and outstanding shares of Coastal at a price of C$19.00 per common share in cash.
The purchase price represents a premium of 28% to the closing price of the company's common shares on the TSX on Nov. 18. The purchaser is a newly incorporated CEPSA-controlled entity in which Strategic Resources (Global) Ltd. is an investor.
The proposed transaction has an aggregate value of C$2.3 billion, including the assumption of C$51 million of net debt. The transaction, which will be completed by way of statutory merger, is expected to close in the first quarter of 2014.