DOW JONES NEWSWIRES
Provident Energy Trust (NYSE:PVX) (PVX) has reached an agreement with Capitol Energy Resources Ltd. (Toronto:CPX) (CPX.T) whereby Provident will offer to acquire all of Capitol's shares for cash consideration of C$467 million, or C$8.16 a share.
Provident said it will also assume Capitol's net debt of about C$41 million, for a total transaction value of C$508 million (US$458 million).
Capitol's board has unanimously agreed to support and tender their shares to the offer. Provident said the acquisition is "accretive on all key per-unit financial and operational measures, including cash flow, reserves, production and net asset value."
The proposed acquisition will be financed through an offering of subscription receipts of about C$325 million and existing credit facilities. Provident will issue 25,490,197 subscription receipts at C$12.75 each through National Bank Financial Inc. and TD Securities Inc.
It said each receipt will entitle the holder to receive, at no extra cost, a Provident unit. According to the TSX Web site, Provident has about 212 million units outstanding.
Capitol is an oil and gas company. Provident is an energy trust.
-Tara Zachariah; 416-306-2100; AskNewswires@dowjones.com
(END) Dow Jones Newswires 05-03-07 1629 Copyright (c) 2007 Dow Jones & Company, Inc.
