Geo-Jade Petroleum acquires Canada's Bankers Petroleum for $440M

Canada's Bankers Petroleum Ltd. (Bankers) has entered into a definitive agreement with 1958082 Alberta Ltd. and Charter Power Investment Ltd. for the purchase of all the issued and outstanding common shares of Bankers at a cash price of $1.685 (CAD 2.20) per Bankers share.

Alberta and Charter Power are affiliates of Geo-Jade Petroleum Corp., one of the largest independent oil and gas exploration and production companies in China. The transaction will be effected by way of a plan of arrangement under the Business Corporations Act (Alberta). The arrangement values Bankers at approximately $440.4 million (CAD 575 million) before the assumption of the outstanding indebtedness of Bankers.

Bankers' corporate and technical headquarters will remain based in Calgary, Canada, with operational offices in Albania, Hungary, and Romania.

The transaction price represents a premium of 98% over Bankers' closing share price on the Toronto Stock Exchange (TSX) of $0.8501 (CAD 1.11) on March 18, and 109% over the 30-trading-day volume weighted average trading price of Bankers shares of $0.8042 (CAD 1.05) per share ending on March 18.

Following a successful transaction, Alberta will support the Bankers' leadership and employee base to capitalize on the experience and depth of the Bankers team. Alberta plans to realize the joint vision of both companies to grow the business with enhanced investment into its Albanian operations, while concurrently focusing on growth opportunities in the global marketplace.

Dentons Canada LLP is acting as legal counsel to Alberta and Charter Power. FirstEnergy Capital LLP is acting as exclusive financial advisor to Bankers and has provided the Bankers board with a fairness opinion regarding the arrangement for its shareholders. McCarthy Tetrault LLP is acting as legal counsel to Bankers.


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