Nexen shareholders vote to approve CNOOC bid
by The Canadian Press
CNOOC has offered $27.50 per share in cash for Nexen
CALGARY—Shareholders of Nexen Inc. have voted to approve a proposed Chinese takeover of the company by China National Offshore Oil Company (CNOOC).
However, the $15.1-billion takeover still requires approval by the Canadian government under the Investment Canada Act.
The deal faces the key “net benefit” test that tripped up BHP-Billiton’s hostile takeover bid for Potash Corp. of Saskatchewan.
Concerns have been raised by Alberta Tory MP Ted Menzies who has said he’s been getting a lot of negative feedback from constituents about the takeover by a state-owned Chinese firm.
Prime Minister Stephen Harper has also said that China needs to show its state-run enterprises can be trusted to play by the same rules as Canada.
CNOOC has offered $27.50 per share in cash for Nexen, about a $10.00-per-share premium on the pre-bid price.
Nexen has offshore oil and gas assets around the world as well as a stake in the Long Lake oil sands project in Alberta and shale gas operations in B.C.
