Equal Energy to detail deal process

Equal Energy Ltd. is preparing a proxy statement to address shareholder concerns about its proposed acquisition by Tulsa-based Petroflow Energy Corp.
by Jay F. Marks Modified: December 18, 2013 at 11:00 pm •  Published: December 17, 2013
Advertisement
;

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.


by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
+ show more


Also ...

Shareholders ask judge to block sale

Two Equal Energy Ltd. shareholders have asked an Oklahoma judge to block the company's proposed sale, claiming the deal with Tulsa-based Petroflow Energy Corp. is “wrongful, unfair and harmful” to shareholders.

Florida residents Kenneth and Aldona Olsen accuse Equal's board of breaching their fiduciary duty to shareholders, according to the lawsuit filed Monday in Oklahoma County District Court.

They are seeking to have the lawsuit certified as a class action on behalf of all Equal shareholders.

The Olsens contend the $230 million deal with Petroflow does constitute a fair value for Equal's shareholders.

“The arrangement consideration fails to accurately and fairly compensate Equal Energy shareholders for the company's recent financial success and the future revenue stream that will be generated by the company's 'new strategy' of focusing on the Hunton play in central Oklahoma,” according to the couple's lawsuit.

The deal must be ratified by two-thirds of Equal's shareholders.

The proxy statement will include information that will directly address items raised by Montclair and others.”

Equal Energy Ltd.,

Trending Now


AROUND THE WEB

  1. 1
    Best cities to launch a startup
  2. 2
    Drought-stricken California may restrict outdoor water use
  3. 3
    Eva Mendes, Ryan Gosling pregnancy sparks Twitter shock from fans - NY Daily News
  4. 4
    Advocates for blind, deaf want more from Apple
  5. 5
    World Cup Fan Scores Modeling Gig From Cheering
+ show more