Petrobank Re-Extends Offer To Ranger Oil
Canada's Petrobank Energy and Resources Ltd. has extended the
deadline of its initial offer to purchase all shares of Ranger Oil
Ltd.'s common stock for another two weeks. Petrobank also has
entered a binding deal with Alberta Energy Co. to sell certain
natural gas assets currently held by Ranger for $262 million if the
hostile takeover bid succeeds.
Petrobank estimates the assets to be sold only equal about 10%
of Ranger's total production on a barrel of oil equivalent basis.
The hostile takeover strategy was first offered on April 6, one day
after Ranger put itself on the market due to concern over share
values by shareholders. The first deadline of May 12 was extended
to June 5, and now the offer has been extended to June 19. Each
share of Ranger stock would receive C $7.50 to a maximum of C $330
million, or three common shares of Petrobank per Ranger share.
The offer is conditioned on: (1) Petrobank being able to acquire
66 2/3% of the outstanding Ranger shares pursuant to the offer; (2)
nominees of Petrobank constituting a majority of the directors of
Ranger; (3) and Ranger allowing Petrobank access to all
confidential operating data without restrictions. The release of
the confidential data is a major sticking point because Ranger has
been showing the data to other suitors who have agreed to its terms
since at least April 17 , but Petrobank has only been offered
access recently and not on its own terms.
Ranger's board of directors recommended its shareholders reject
the offer, due largely to the per share terms. "Petrobank's offer
falls far short of capturing the true value of Ranger's assets and
opportunities and is not in the interests of Ranger's shareholders.
We believe that Ranger shareholders will be much better served by
the process of maximizing shareholder value which is currently
underway and moving forward on schedule," Fred Dyment, president of
Ranger Oil said in a previous statement.
Petrobank is currently reviewing and examining its alternatives
for improvements of the terms and conditions of the offer that is
on the table. It expects to be at a point within the near future to
announce its findings.
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