Business
Dana Gas PJSC announces agreement to acquire Centurion Energy International Inc. for C$1.15 billion
Dana Gas PJSC announces agreement to acquire Centurion Energy International Inc. for C$1.15 billion.
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[{"type":"text","content":"\n\n\n\n\n\n>\n\nSHARJAH, UNITED ARAB EMIRATES, Nov. 12 /CNW/ - Dana Gas PJSC announced\ntoday that it has entered into an agreement with Centurion Energy\nInternational Inc. of Calgary, Alberta to acquire all of Centurion's\noutstanding common shares for C$12.00 per share.\nBased in Sharjah, UAE, Dana Gas is a private-sector natural gas company\noperating in the Arabian Gulf Region and listed on the Abu Dhabi Stock Market.\nCenturion Energy is headquartered in Calgary and is engaged in oil and gas\nexploration and production with properties in Egypt, Tunisia and offshore West\nAfrica. It is listed on the Toronto Stock Exchange and London AIM.\nThe agreement, signed by the Chairmen of both companies in Cairo, Egypt\ntoday, has the unanimous support of the two Boards of Directors and the\nCenturion Board will recommend that its shareholders accept the Dana Gas\noffer. The acquisition will be completed by way of a statutory plan of\narrangement and requires the approval of no less than 66 2/3% of the\nshareholders of Centurion voting at a special meeting of shareholders to be\nheld in early January 2007.\nAt C$12.00 per Centurion share, the equity value of the transaction is\napproximately C$ 1.15 billion on a fully diluted basis. Dana Gas will also\nassume Centurion's net debt of approximately C$99 million, giving the\ntransaction a total value of approximately C$ 1.25 billion, or US$ 1.10\nbillion.\nThe offer price represents a premium of 36.4% over the trading price of\nCenturion shares on October 30, 2006, the last trading day before Centurion\nannounced it had received an unsolicited approach from a third party. It also\nrepresents a 55.9% premium to Centurion's volume weighted average closing\nprice for the 20 trading days up to 30 October 2006. The offer price implies a\nvalue of US$11.3/proven plus probable boe.\nThe transaction achieves Dana Gas's stated aim of accelerating its growth\nstrategy through the acquisition of exploration and production (E&P)\noperations in the Middle East and North Africa region. Centurion's assets\ncomplement Dana Gas's existing gas chain activities and expertise in\ntransportation, processing and marketing of natural gas and represent the\nentry by Dana Gas into the upstream gas sector. The acquired portfolio\ncomprises an attractive combination of existing production and associated cash...