Colombia's Pacific Rubiales buys rival oil firm Petrominerales for C$1.6 billion
BOGOTA (Reuters) - Pacific Rubiales Energy Corp (PRE.TO), Colombia's largest private oil company, said it will buy compatriot oil producer and explorer Petrominerales Ltd PMG.TO for C$1.6 billion ($1.55 billion), financing the deal with cash and loans.
Petrominerales shareholders will receive C$11 in cash per ordinary share, totaling around C$935 million, plus a common share in the recently formed ExploreCo, and the assumption of net debt estimated at C$640 million, including convertible bonds. It has operations in Colombia, Peru and Brazil.
"The financing of the acquisition will take place through available cash and bank credit lines, including an acquired commitment of a US$1.3 million short term bank loan that the company hopes to refinance once the acquisition is complete," Pacific Rubiales said in a filing to Colombia's financial regulator late on Sunday.
Pacific Rubiales will acquire 18 blocks comprising 1.6 million acres gross and net in Colombia, and four blocks comprising 8.2 million acres gross, or 5.2 million net, in Peru.
Through the purchase, Pacific Rubiales will also gain 5 percent of oil pipeline Oleoducto Central S.A. and 9.65 percent of pipeline Oleoducto Bicentenario, both of which are in Colombia.
"This acquisition fits our strategy excellently, generating immediate additional value through synergies of assets and increasing production and cash flow attractively," Pacific Rubiales Chief Executive Ronald Pantin said in the filing.
Canada's financial regulator suspended trading in the shares of both Toronto-listed companies on Friday amid speculation of a forthcoming deal.
(Reporting by Nelson Bocanegra; Writing by Peter Murphy; Editing by Christopher Cushing)
WASHINGTON - When U.S. regulators adopt the Volcker rule on Tuesday, they will make good on a promise by politicians to rein in banks' ability to gamble with their own money.
SAN FRANCISCO - At Pinterest, the four-year-old online bulletin board service that is valued near $3.8 billion, some 70 percent of the users are female. But the company's board of directors is 100 percent male. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.