Canada’s Nexen oil company shareholders approve Chinese takeover for $15.1 billion

September 22nd, 2012 - 9:21 pm ICT by BNO News  

CALGARY, CANADA (BNO NEWS) — Canadian oil and gas company, Nexen Inc., on Thursday announced that its shareholders have approved the proposed takeover by China National Offshore Oil Company (CNOOC).

The Plan of Arrangement, reportedly a $15.1 billion deal, was carried out through CNOOC Canada Holding Ltd. and was approved by approximately 99 percent of the votes cast by Nexen common shareholders and around 87 percent of the votes cast by Nexen preferred shareholders at the special meeting held on Thursday.

According to the proposed agreement, CNOOC would be purchasing all of the outstanding common shares of Nexen for $27.50 per share in cash, including the company’s current debt of $4.3 billion which will remain outstanding.

However, the closing of the arrangement remains subject to the granting of the final order by the Court of Queen’s Bench of Alberta, the receipt of required regulatory approvals and the satisfaction or waiver of the other customary closing conditions.

Nexen operates oil sands and shale gas in Western Canada and conventional exploration and development primarily in the UK North Sea, offshore West Africa and Gulf of Mexico.

During the second quarter of this year, Nexen, which is based in Calgary, Alberta, produced an average of 207,000 barrels of oil equivalent per day. As of December 2011, it also has about 5.6 billion barrels of oil equivalent when its Canadian oil sands are considered.

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