BOGOTA, Colombia (AP) — Colombia's biggest private oil driller has received a takeover bid from its largest shareholder after shares in the company plunged more than 70 percent over the past six months due to falling crude prices.
The Toronto-listed Pacific Rubiales said in a statement late Tuesday it had received an offer from Mexican conglomerate Alfa together with investors from Hong Kong and the U.S. to buy the company for CA$6.50 ($5.40) per share. That would value the company around $2 billion. Currently Alfa owns just under 20 percent of the company.
The deal has yet to be approved.
Pacific Rubiales operates Colombia's largest oil field but has had to slash investment and sell assets as plunging oil prices put pressure on the heavily leveraged company.