By Lisa Kerner
Charlotte, N.C., Sept. 24 -Abu Dhabi National Energy Co. PJSC (TAQA) subsidiaries 1350849 Alberta Ltd. and TAQA North Ltd. agreed to acquire PrimeWest Energy Trust for a cash consideration of C$26.75 per unit, the companies announced on Monday.
The deal is valued at about C$5 billion including debt and is expected to close in the fourth quarter.
Under the arrangement agreement, PrimeWest will maintain its current monthly distribution at an amount not greater than C$0.25 per unit payable in both October and November.
PrimeWest's board of directors unanimously approved the deal, which includes a non-completion fee of C$75 million. The Calgary, Alta., oil and gas royalty trust was advised by CIBC World Markets Inc., which also provided a fairness opinion.
TD Securities Inc. is advising TAQA and TAQA North (formerly Northrock Resources Ltd.) in the transaction. TAQA North is an oil and gas exploration company also located in Calgary.
| Acquirer: | Abu Dhabi National Energy Co. PJSC
|
| Target: | PrimeWest Energy Trust
|
| Price per share: | C$26.75
|
| Transaction total: | C$5 billion
|
| Termination fee: | C$75 million
|
| Announcement date: | Sept. 24
|
| Expected closing: | Fourth quarter of 2007
|
| Stock price for target: | TSX: PWI: C$19.94 on Sept. 21
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