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Bonterra Energy Corp. Continues to Recommend Shareholders Reject the Hostile Bid and Provides Operational Update
Bonterra Energy Corp. Continues to Recommend Shareholders Reject the Hostile Bid and Prov...
About this update from Bonterra Energy Corp.
[{"type":"text","content":"\n \n \n \n Bonterra Energy Corp. Continues to Recommend Shareholders Reject the Hostile Bid and Provides Operational Update\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Dec. 22, 2020\n \n /CNW/ - Bonterra Energy Corp. (\n \n www.bonterraenergy.com\n \n ) (TSX: BNE) (\"Bonterra\" or the \"Company\") today acknowledges amendments to the unsolicited offer from Obsidian Energy Ltd. (\"Obsidian\") to purchase all of the issued and outstanding common shares of Bonterra (the \"Hostile Bid\") and continues to recommend that Bonterra Shareholders\n \n \n take no action\n \n \n , and\n \n \n REJECT\n \n \n the Hostile Bid by\n \n \n NOT TENDERING\n \n \n their shares.\n \n \n Obsidian's Hostile Bid has proven to be unsuccessful, with Bonterra shareholders overwhelmingly advising they will not tender their shares. Rather than acknowledge the views of Bonterra shareholders and withdraw the Hostile Bid, Obsidian has instead chosen to extend the tender date of the Hostile Bid from\n \n January 4\n \n \n th\n \n to\n \n January 25\n \n \n th\n \n , 2021. In addition, Obsidian has reduced the minimum number of outstanding Bonterra shares that must be tendered to complete the Hostile Bid from the customary 66 2/3 percent down to over 50 percent. This change indicates that Obsidian does not expect the higher tender condition will be achieved due to the lack of Bonterra shareholder support of the Hostile Bid.\n \n \n Meanwhile, Obsidian has not addressed its ability to obtain the third-party consents and approvals required to complete the Hostile Bid, including the consent of each of Obsidian's and Bonterra's lenders. In addition, the rationale of the Hostile Bid is highly dependent on the achievement of significant synergies and cost savings which remain uncertain, and Obsidian's significantly higher asset retirement obligations remain and will leave Bonterra shareholders a disproportionately higher allocation of future abandonment liabilities.\n \n \n Bonterra's position regarding th...