Canadian-based Penn West Energy Trust and Petrofund Energy Trust announced Wednesday that 88% of their unitholders have approved their $2.61 billion (C$2.99 billion) merger plan, but 70% have voted down a proposed new junior oil and natural gas exploration and development company.
The Calgary cross-town rivals announced their merger in April, which will create Canada’s largest energy trust by sales (see Daily GPI, April 18). The merger has a value of about $9.8 billion (C$11 billion).
A majority voted for the merger and 66% voted in favor of an option plan. However, unitholders turned back an attempt to place some shares in ExploreCo to provide it with working capital to launch operations. Because of the defeat, the option plan will not be completed, Penn West said. It did not say if it will attempt to spin off an exploration company in the future.
The companies said the merger is expected to be completed by Friday.
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