Pay Day! Beau Canada to be acquired by Murphy Oil
Beau Canada Exploration Ltd
BAU
Shares issued 91,816,628
2000-10-04 close $1.69
Wednesday Oct 4 2000
News Release
Also Murphy Oil Corporation (MUR.U)
Mr. Harvey Doerr reports
Murphy Oil and Beau Canada Exploration have entered into an agreement under which
Murphy will make an offer of $2.15 per share in cash for all of the issued and
outstanding common shares of Beau Canada. The total value of the offer is
approximately $381-million, including assumed indebtedness of Beau Canada of
approximately $183-million at Sept. 30, 2000. The offer represents a 27-per-cent
premium over Beau Canada's closing price of $1.69 on the Toronto Stock Exchange
on Oct. 4, 2000.
The offer has the unanimous support of the board of directors of Beau Canada and
Beau Canada's directors have advised that they will tender their common shares to the
Murphy offer. The agreement provides that Beau Canada will pay Murphy a
termination fee of $10-million in certain circumstances. In addition, Beau Canada has
agreed to close its data room and not solicit further offers. The offering circular
associated with the transaction is expected to be mailed to Beau Canada shareholders
shortly and the offer will expire 21 days thereafter. The offer will be made through a
wholly owned subsidiary of Murphy. The offer is conditional on, among other things,
at least two-thirds of Beau Canada's common shares (fully diluted) being tendered, and
receipt of all necessary regulatory approvals and on conditions customary in
transactions of this nature. Beau Canada's board has also resolved to extend the
separation time of the rights to, and to waive the application of Beau Canada's
shareholders rights plan to the Murphy offer, immediately prior to the expiry time of
the offer.
Bruce R. Libin, QC, chairman and managing director of Beau Canada, stated: "We are
pleased with the result of an extensive process designed to enhance shareholder value.
On behalf of the board of directors and shareholders I thank all employees of Beau
Canada who built the value being recognized today."
Claiborne P. Deming, president and chief executive officer of Murphy, stated that "the
Western Canadian sedimentary basin has been an important contributor to Murphy's
operations for many years. The acquisition of Beau Canada solidifies our position.
Currently producing properties present numerous cost-saving opportunities through
synergies and economies of scale, while an attractive array of exploration prospects
offer significant future growth potential. This acquisition is a strategic step for Murphy
in our effort to capitalize on the important North American natural gas market."
FirstEnergy Capital Corp., BMO Nesbitt Burns Inc. and Griffiths McBurney &
Partners, Beau Canada's financial advisers, have expressed an opinion to the board of
directors of Beau Canada that the Murphy offer is fair from a financial point of view to
Beau Canada shareholders.
(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com |
