Legacy to acquire Corinthian in $225M deal
The purchase price includes 20.1 million Legacy shares worth more than $191 million
CALGARY—Legacy Oil + Gas Inc. plans to acquire Corinthian Exploration Corp., a privately held company with light oil assets in North Dakota and Alberta, in a stock-and-debt deal valued at about $225 million.
The purchase price includes 20.1 million Legacy shares worth more than $191 million based on the June 25 closing price on the Toronto Stock Exchange. The deal also includes the assumption of $34 million of Corinthian debt.
“Through the acquisition, Legacy will acquire high quality, high netback, light oil assets focused in the company’s North Dakota Spearfish core area,” Legacy said in a statement after markets closed.
The acquisition also includes a meaningful position in the Dunvegan light oil play in the Elmworth area of northwest Alberta, with “production, undeveloped land and drilling upside and owned and operated key facilities and infrastructure.”
Upon closing, Legacy will examine alternatives for the Elmworth asset, which could include disposition, the company said.
Legacy said holders of more than 91.4 per cent of the common shares of Corinthian have entered into agreements to vote in favour of the transaction and the board of directors of Corinthian has unanimously approved the deal. There is also a mutual non-completion fee of $8 million in the event the transaction is not completed under certain circumstances.
The deal is expected to close in July 2014 subject to various approvals.