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Minister of Industry approves Cnooc units' acquisition of OPTI Canada
By Caroline Salls
Pittsburgh, Nov. 16 - OPTI Canada Inc. said the Minister of Industry under the Investment Canada Act has approved the proposed acquisition of OPTI by indirect wholly owned subsidiaries of Cnooc Ltd., according to a news release.
The company said the minister determined that the transaction is likely to be of net benefit to Canada.
Completion of the transaction is also subject to satisfaction of other customary conditions and is expected to be completed before Dec. 1, the release said.
As previously reported, the total value of the acquisition is $2.1 billion.
Under the acquisition, the Cnooc subsidiaries will
• Acquire OPTI's second-lien notes for a net cash payment of $1.179 billion and pay $37.5 million to backstop parties;
• Acquire all existing issued and outstanding common shares of OPTI for a cash payment of $34 million, equal to $0.12 per common share; and
• Assume the company's first-lien notes in accordance with the indenture.
OPTI Canada is a Calgary, Alta.-based company focused on developing oil-sands projects.
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