Canada’s Daylight Energy is to be acquired by Sinopec International Petroleum Exploration and Production Corporation (SIPC) for approximately C$2.2 billion.
Daylight is a growing intermediate oil and liquids rich natural gas producing company with a high quality suite of resource play assets in Western Canada.
SIPC is a wholly owned subsidiary of China Petrochemical Corporation Sinopec Group and undertakes overseas investments and operations in the upstream oil and gas sector. Sinopec Group is China's largest producer and supplier of oil products and major petrochemical products.
The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta).
“We are very pleased to announce this transaction and the considerable value it brings to our security holders,” said Anthony Lambert, president and chief executive officer of Daylight.
“We believe this transaction with SIPC recognizes the highly attractive asset portfolio and exceptional team that we have assembled at Daylight. The efforts and accomplishments of this team will be built upon through increased investment in the business and acceleration of our development and exploration opportunities."
The board of directors of Daylight, after consulting with its financial and legal advisors, has unanimously approved the arrangement and unanimously determined that the transaction is in the best interests of Daylight and is fair to Daylight shareholders and debenture holders.
