LONDON (Alliance News) - Caracal Energy Inc Monday said its proposed acquisition by Glencore PLC has been approved by both its shareholders and the Court of Queen's Bench in Canada, with the takeover expected to close within a month.
The oil and gas exploration and development company said that at a special meeting of shareholders to vote on the acquisition, the arrangement was passed by 99.79% of its shareholders and received the minority approval necessary to move the process forward.
The company also said that following the meeting, the Court of Queen's Bench of Alberta granted its final order approving the deal.
It said that it now expects the acquisition to close in late June or early July, subject to certain conditions including the granting of an approval under the Investment Canada Act.
On April 14, Glencore reached a deal to acquire Caracal Energy for 550 pence a share, or about GBP808.5 million in cash, ending Caracal's proposed merger with Transglobe Energy Corp and giving Glencore new oil and gas assets in Africa.
At the time, Caracal, which operates in Chad, said it had unanimously approved the arrangement and concluded that it was in the best interests of the company. It said it would pay the USD9.3 million termination fee to end its proposed merger with Transglobe Energy Corp as the Glencore deal represented a superior proposal.
Glencore said at the time that the deal is expected to close in the second quarter of 2014 and represented a 61% premium to Caracal's 342 pence closing share price on April 11 and a 54% premium to the 357 pence volume-weighted average price of the shares in the 30 trading days leading up to the announcement.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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