Enmax extends offer for Cordero, dividend added
TORONTO, June 13 (Reuters) - Enmax Corp said on Friday that it extended the deadline for the takeover of junior natural gas producer Cordero Energy COR.TO as the two sides agreed to sweeten the deal with a special dividend.
Enmax, the municipally owned power utility in Calgary, Alberta, allowed Cordero to offer to pay a 45 Canadian cents a share dividend to all Cordero shareholders if the deal is finalized.
Enmax said the C$4.75 a share offer for Cordero would remain, resulting in total cash consideration of C$5.20 per share. It also extended its bid by two weeks to June 27.
"We feel that the extra value that has been created by Cordero since starting this acquisition belongs to its shareholders, so we have agreed to allow Cordero to deliver this value back through a special dividend," Gary Holden, Enmax president and chief executive, said in a release.
Enmax is looking to the acquisition to help it guarantee gas supplies for the Calgary Energy Centre, from which it is buying power under a 20-year tolling agreement signed last year.
Late last month, Cordero rejected an unsolicited takeover offer from Ember Resources Inc (EBR.TO) worth C$4.92 a share in favor of the Enmax offer. ($1=$1.03 Canadian) (Reporting by Scott Anderson; Editing by Louise Heavens)
