Apco signs merger agreement with Pluspetrol

Apco Oil and Gas International Inc.

Apco Oil and Gas International Inc. (NASDAQ:APAGF) has entered into a definitive merger agreement with privately held Pluspetrol Resources Corp.

Under the terms of the agreement, which has been approved by Apco’s board of directors, Apco shareholders will receive $14.50 in cash for each share of Class A and ordinary shares they own in a transaction valued at $427 million.

The per share price represents an 18% premium to Apco’s closing share price of $12.30 on Oct. 1 and a 52% premium to the closing price on May 1, 2013, which was the day prior to when Apco’s majority shareholder announced that it would consider the disposition of its Apco interests.

The transaction is subject to two-thirds approval by Apco shareholders and other customary closing conditions. WPX Energy (NYSE:WPX), which owns a 69% controlling equity interest in Apco, supports the merger agreement.

Apco will file a proxy statement with the Securities and Exchange Commission and schedule a meeting for shareholders to approve the merger agreement. WPX has executed a power of attorney to vote in favor of the adoption of the merger agreement unless the merger agreement is terminated prior to shareholder approval.

Jefferies served as the exclusive financial advisor to Apco in connection with the transaction. Weil, Gotshal and Manges LLP acted as legal advisors to Apco.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...