Business
Shell Canada to make bid to acquire BlackRock Ventures
Shell Canada to make bid to acquire BlackRock Ventures.
About this update from Mapath Capital Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY, May 8 /CNW/ - Shell Canada Limited (TSX:SHC) and BlackRock\nVentures Inc. (TSX-BVI) announced today that they have entered into an\nagreement whereby Shell Canada will make an all-cash offer to acquire all of\nthe issued and outstanding shares of BlackRock by way of a take-over bid. The\ncash price will be $24.00 per share, valuing the transaction at approximately\nCdn $2.4 billion on a fully-diluted basis. The offer represents a 27 per cent\npremium over Friday's closing price of $18.88 per share.\n\"This acquisition is consistent with our growth plan, and BlackRock's\nassets are an excellent fit with our Peace River in situ assets,\" said Clive\nMather, Shell Canada's President and CEO. \"This acquisition will augment our\noverall oil sands portfolio. It will add 12,000 to 14,000 barrels per day of\nheavy oil production and provide Shell Canada with access to significant\nadditional resources.\"\n\"In addition, BlackRock has built a strong and talented team to execute\nits various projects, so we will work to retain as many BlackRock employees\nand contractors as possible,\" said Mather.\nJohn Festival, President, BlackRock Ventures said, \"We recognized that\nthe tremendous potential identified on our properties outstripped our\nfinancial and operational ability to develop them in a timely manner. Shell is\na logical operator of our assets due to the strategic fit with their own\noperations. In addition, Shell has a long history of innovations and technical\nexcellence in Canada and will capitalize on the true potential of our\nproperties. I would like to thank the directors, employees and contractors who\nall helped build BlackRock into a multi-billion dollar company from our humble\nbeginnings seven years ago. We should all be proud of this accomplishment.\"\nThe agreement provides that BlackRock will pay Shell Canada a non-\ncompletion fee of $65 million in certain circumstances. The agreement includes\ncustomary non-solicitation covenants and BlackRock has reserved the right to\nrespond to superior proposals. Shell Canada also has the right to match\nsuperior proposals under terms of the agreement. The Board of Directors of\nBlackRock has unanimously approved the transaction and concluded that the\ntransaction is in the best interests of the BlackRock shareholders. In\naddition, the Board of Directors h...