Addax reveals revised 3.75% bonds change-of-control conversion price

By Jennifer Chiou

New York, Sept. 9 - Addax Petroleum Corp. announced that the change-of-control conversion price for its $300 million of 3.75% convertible bonds due 2012 has been adjusted to C$45.596 from C$45.827.

On Aug. 17, the company said it exercised its right to redeem all of the bonds on Oct. 1.

The redemption is in connection with the company's June 24 announced buyout for C$52.80 a share in cash by a Chinese firm. Under the buyout, it had agreed to a takeover by Sinopec International Petroleum Exploration and Production Corp. for C$8.27 billion.

The Calgary, Alta.-based company said that the change-of-control period began on Aug. 14 and will end on Sept. 16 with the revised conversion price. Those who have already converted their bonds based on the original price will be issued additional shares to reflect the new price.

As previously announced on the takeover, the cash bid represents a 47% premium to the closing price of Addax shares on the Toronto Stock Exchange on June 5, the day prior to the oil and gas explorer's announcement that it was in preliminary deal discussions.

The deal had to receive approvals from several governments, including the Government of the People's Republic of China. It included a C$300 million termination fee if China did not give its approval by Aug. 24, according to prior a statement from Addax.

On Aug. 14, holders of 92.67% of Addax's shares gave approval.

On July 10, Addax announced that its shares traded at a discount a day after Sinopec opened its C$8.27 billion tender offer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.