By the OGJ Online Staff
HOUSTON, May 3 -- National Fuel Exploration Corp., a subsidiary of Buffalo, NY-based Seneca Resources Corp., has agreed to acquire Player Petroleum Corp., Calgary, in a transaction worth $165 million (Can.).
Player is an oil and natural gas exploration company focused on Western Canada.
The price is $16.25/Player share and includes assumed debt and working capital deficiency of $10 million.
The offer represents a 14% premium to a 30-day weighted average trading price, said Player.
The directors of Player and NFE have unanimously supported the offer.
Among other requirements, 66.67% or more of Player's shares must be tendered. Player has agreed not to solicit or initiate discussions with any third party. The agreement also provides that NFE will receive a $7 million termination in certain circumstances.
Steve Johnson, president and CEO of Player, said, "We are pleased to accept this offer, which represents fair value for the company. In fact, the offer reflects a 52% return for shareholders since the beginning of the year and 207% over the last 12 months."
