Equal Energy Ltd. on Tuesday promised to answer shareholders questions about its proposed acquisition by Petroflow Energy Corp.
Two of Equal's largest shareholders have raised concerns about the deal announced Dec. 9, including would-be buyer Montclair Energy LLC.
Equal intends to file a proxy statement soon detailing the rationale behind its board's decision to accept the Petroflow deal, the company said Tuesday in a news release.
“The proxy statement will include information that will directly address items raised by Montclair and others,” Equal said.
Equal, which moved from Calgary to Oklahoma City in March, maintains the deal is a fair and serves the best interests of its shareholders.
The company said a special committee of independent board members reviewed all proposals, including the Montclair bid that was rejected in March.
“The board of directors, with input from its expert financial and legal advisers, unanimously determined that the Petroflow proposal provided the highest and best value to our shareholders,” the company said Tuesday.
Deal depends on shareholders
Tulsa-based Petroflow has agreed to pay $5.43 a share for all of Equal's outstanding stock in a deal worth about $230 million. Montclair had offered to acquire Equal for $4 a share.
Equal's stock dipped a penny on Tuesday, closing at $5.34. It was trading for $5.37 after the Petroflow deal was announced.
Montclair and California-based Lawndale Capital Management LLC have indicated they may vote against the Petroflow deal, which must be approved by two-thirds of the company's shareholders.