Daylight Resources Trust To Buy Highpine Oil & Gas
updated Monday, August 24, 4:49 PMDaylight Resources Trust (DAY.UN.CA) and Highpine Oil & Gas Limited (HPX.CA) announced that they have entered into an agreement pursuant to which Daylight will acquire all of the issued and outstanding class "A" common shares of Highpine.
Highpine shareholders would receive 0.85 of a Daylight trust unit, or $7.00 in cash per share, representing a 38% premium to the 20-day weighted average Highpine share price.
Total consideration for the Transaction is approximately $530 million, including the assumption of Highpine's net debt and transaction costs.
According to the companies, the transaction is highly accretive to Daylight's per unit cash flow. Additionally, Daylight internally estimates adding a minimum of 31.2 million BOE through the transaction.
In afternoon trading Daylight Resources is trading down 0.86% at $8.06.
Highpine Oil & Gas is trading up 18.41% at $6.69.
For MarketNewsVideo.com, I'm Angela Salvucci.