Canada: Petronas Raises Offer for Progress

Canada’s Progress Energy said that Petronas of Malaysia has agreed to raise its offer to buy the company by 8 percent, after Progress received an unsolicited proposal from a third party.

“Pursuant to the Amending Agreement, the Purchaser has agreed to increase the consideration payable to holders of Common Shares under the plan of arrangement contemplated under the Arrangement Agreement, from C$20.45 per Common Share to C$22.00 per Common Share. As a result of the increase in the consideration payable for the Common Shares under the Arrangement, assuming an effective date of September 25, 2012, the cash consideration under the Arrangement for each $1,000 principal amount of Debentures, and excluding accrued interest and notional interest, will now be increased to approximately $1,265 for the 2014 Debentures and $1,213 for the 2016 Debentures,” the company said in a statement.

“The Board of Directors of Progress has unanimously determined that the amended Arrangement is in the best interests of Progress and is fair to Shareholders and Debentureholders. The Board of Progress has unanimously approved the amended Arrangement and determined to recommend that holders of Common Shares and Debentures vote in favour of the amended Arrangement,” the company added.

[mappress]
LNG World News Staff, July 30, 2012