Newspaper article The Canadian Press

Bonterra Energy Strikes Deal to Acquire Spartan Oil

Newspaper article The Canadian Press

Bonterra Energy Strikes Deal to Acquire Spartan Oil

Article excerpt

Bonterra strikes deal to acquire Spartan oil

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CALGARY - Bonterra Energy Corp. (TSX:BNE) plans to acquire Spartan Oil Corp. (TSX:STO) in a friendly all-stock transaction that shunts aside a rival offer and values Spartan at more than $419 million.

Under terms of the deal, Spartan shareholders would receive 0.1169 of a Bonterra share for each of their shares, giving them 35 per cent of the combined company.

Bonterra has also committed, subject to the completion of the arrangement, to increase its monthly dividend to 28 cents from 26 cents beginning March 2013.

Based on Bonterra's 30-day closing price of $43.05, the "implied price" is $5.03 per for each of Spartan's almost 83.4 million shares.

On the Toronto Stock Exchange, Bonterra shares were up 21 cents at $42.31 near midday, while Spartan stock was down three cents at $4.85 although still up from Friday's close of $4.40.

Meanwhile, Spartan has agreed to terminate its Nov. 20 agreement with Pinecrest Energy Inc. …

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