LONDON (Alliance News) - Bankers Petroleum Ltd Wednesday said it has secured ministerial approval in Canada for the proposed takeover of the company by Chinese oil and gas group Geo-Jade Petroleum Corp, and approval from Chinese authorities remains the last hurdle to the deal.
Bankers said ministers approved the proposed plan of arrangement with affiliates of Geo-Jade Petroleum under the Investment Canada Act, and the proposed deal only requires regulatory approval of the Chinese State Administration of Foreign Exchange in order to advance.
Bankers has already secured regulatory approval from the Albanian Competition Authority, the Chinese National Development and Reform Commission, and the Ministry of Commerce of the People's Republic of China through the Shanghai Free Trade Zone Management Committee.
"Bankers anticipates receipt of this approval in the coming weeks and closing of the arrangement to occur shortly thereafter in July," said the company.
In June, Bankers said it expected the deal would close in "late June or early July".
Two companies that are affiliates of Geo-Jade Petroleum Corp originally made an offer to take over Bankers back in April in a deal that valued Bankers at around CAD575.4 million, which roughly equates to around GBP304.0 million.
The offer that has been made is CAD2.20 per Bankers Petroleum share, which at the time was a 98% premium to Bankers' closing share price on the Toronto Stock Exchange on the last trading day prior to the offer being made.
Bankers Petroleum shares would be delisted from both the London Stock Exchange and the Toronto Stock Exchange should the deal go ahead.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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