Business
Gibson Energy Inc. enters into an Arrangement Agreement to Acquire Palko Environmental Ltd.
All financial figures are in Canadian dollars unless noted otherwise CALGARY, Oct. 17,...
About this update from Gibson Energy Inc.
[{"type":"text","content":"\n\n\n\n\n\n\n\n\nAll financial figures are in Canadian dollars unless noted otherwise\n\n\nCALGARY, Oct. 17, 2011 /CNW/ - Gibson Energy Inc. (\"Gibson\"), TSX: GEI, and Palko Environmental Ltd. (\"Palko\"), TSX: PLK,\n are pleased to announce that they have entered into an agreement\n providing for the acquisition by Gibson of all of the issued and\n outstanding common shares of Palko (\"Palko Shares\") not already owned,\n directly or indirectly, by Gibson (the \"Transaction\"). Under the terms\n of the Transaction, shareholders of Palko may elect to receive either:\n (i) 0.1717 of a common share of Gibson (\"Gibson Share\") for each Palko\n Share; or (ii) $3.05 cash for each Palko Share; or (iii) a combination\n thereof. The total cost to Gibson is approximately $62.7 million,\n including the assumption of estimated net debt of approximately $15.95\n million.  When combined with Gibson's investments in Palko to date\n pursuant to which Gibson has acquired approximately 39% of the\n outstanding Palko Shares, Gibson is paying an effective price of\n approximately $2.26 per Palko Share in order to acquire 100% of Palko.\n\n\nThe Transaction will expand Gibson's Canadian custom terminal operations\n to include water disposal services and oilfield waste management. \"The\n acquisition of the remaining interest of Palko is a key step in forming\n this platform to meet the ever increasing water disposal services and\n oilfield waste management needs of the oil and gas industry in North\n America\" said Stew Hanlon, President and Chief Executive Officer of\n Gibson.  \"Palko represents a strategic acquisition for Gibson. Combined\n with our recent investment in the Plato Pipeline, Treating and Disposal\n facility (\"Plato\") and development plans for our Rimbey Custom Terminal\n (\"Rimbey\"), it creates a service offering in western Canada that will\n make Gibson a significant player in this space.\"  The combined\n platform, including Palko (100% interest), Plato and Rimbey, represents\n an investment by Gibson of $82 million for a total estimated EBITDA\n contribution of $16 million per year when fully operational.  A\n detailed description and location map of these assets are in the\n Appendix of this press release.  \"This expansion of Gibson's custom\n terminal service offering across western Canada will...