Celtic Exploration board unanimously supports proposal, has agreed not to seek a better offer
CALGARY—Celtic Exploration has received a takeover offer from Exxon Mobil valued at approximately $3.1-billion.
The Calgary-based oil and gas exploration and development company works mostly in the Montney and Duvernay gas plays in B.C. and Alberta.
The total price of the Exxon Mobil offer through Exxon Mobil Canada Ltd. includes debt and spending obligations that the buyers would assume.
Celtic’s shareholders are being offered $24.50 per share—well above recent market prices—and a half-share of a new company, code-named Spinco.
Spinco will be a new publicly listed oil and gas company led by Celtic’s current management team.
The new company will have about 49,000 acres of undeveloped lands and produce the equivalent of about 3,300 barrels per day, about 90 per cent in the form of gas.
The board of Celtic unanimously supports the proposal and has agreed not to seek a better offer but is entitled to consider rival offers brought to it.
Exxon Mobil Canada will have a right to match any superior proposal.
The deal will require approvals from shareholders and debtholders.
Celtic says it will pay a $90-million fee if the deal with Exxon doesn’t close.
-With files from The Canadian Press