Equal resets energy deal
Equal Energy Ltd. has agreed to amend the terms of a proposed deal with Petroflow Energy Corp.
The original deal that would allow Petroflow to acquire all outstanding Equal shares was supposed to be completed by Thursday, but the companies struck a deal to extend the deadline to July 31.
“We are pleased that Petroflow has secured their financing commitment and we continue to believe that the arrangement with Petroflow provides maximum value to our shareholders,” Equal Chairman Michael Doyle said. “We have agreed to an extension so that the arrangement can be presented to shareholders for a vote, and Petroflow has agreed that shareholders should receive the dividend payments as compensation for the later closing.”
Equal shareholders will receive a pair of 5-cent dividends in the agreement announced Thursday. One will be paid on May 28, while the other will be paid once the Petroflow deal is completed.
Two of Equal’s largest shareholders had complained that the company’s first-quarter dividend was suspended as part of Petroflow’s deal, which was announced in December.
Tulsa-based Petroflow has agreed to pay $5.43 a share of all of Equal’s outstanding stock, putting the value of the deal at about $230 million. An Equal shareholders meeting has not been set.
From Staff Reports