Addax Petroleum agrees to $8.27B takeover offer June 24, 2009
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Addax Petroleum Corp. of Calgary has struck an $8.27-billion deal to be taken over by Sinopec International Petroleum Exploration and Production Corp., a Chinese company.
Sinopec will pay $52.80 in cash for each share of Addax.
Addax 3-month TSX chart
In morning trading on the Toronto Stock Exchange, investors sent shares of Addax up more than nine per cent. The stock was up $4.25 at $49.90.
The companies said the offer represents a 47 per cent premium to the closing market price of Addax common shares on June 5, 2009, the day before Addax publicly said it was in preliminary discussions with parties regarding a potential transaction.
The board of Addax has unanimously approved Sinopec’s offer, and the top executives of Addax have agreed to tender their holdings.
“We are pleased that Sinopec has recognized the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum,” company president and CEO Jean Claude Gandur said in a release.
“The efforts and accomplishments that Addax Petroleum has achieved thus far will be built on through increased investment in the business and acceleration of development and exploration plans.”
Addax has agreed to pay Sinopec a $300 million break-up fee if the deal is not completed under certain conditions.
