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Lundin Petroleum AB completes acquisition of Valkyries Petroleum Corporation
Posted on Wednesday, 09 August 2006 00:00
On 22/01/04 it was reported that Lundin Petroleum is close to a major acquisition which will increase the company's production with 5,000 to 6,000 barrel of oil per day. No financial details were disclosed. On 29/05/06 Lundin Petroleum announced that it has entered into an agreement to acquire Valkyries Petroleum Corporation, the Vancouver-based oil, and gas exploration company. Under the terms of the acquisition, Lundin is to offer one Lundin share for every share of Valkyries in issue. Lundin Petroleum already owns around 10.1 per cent of Valkyries Petroleum. The offer price can be valued at CAD 13.70 based upon Lundin's closing share price of SEK 89.50 on 26/05/06, the last day of trading before the offer was announced. The offer price represents a bid premium of 9.51 per cent over Valkyries closing share price of CAD 12.51 on 26/05/06, the last trading day before the offer was announced, and a rumour date bid premium of 585 per cent over Valkyries Petroleum's closing share price of CAD 2 on 21/01/04, the day before the original offer was announced. The offer was reported to be worth around CAD 780 million. The offer has been approved by the boards of both Lundin and Valkyries, and is subject to regulatory approval. The offer is expected to close in July. On 25/07/06 Valkyries Petroleum Corporation announced that its shareholders have approved the takeover and that 99 per cent of the votes at the recently held shareholder meeting were in favour of the bid. The takeover is now expected to be completed by 31/07/06. On 08/08/06 Valkyries Petroleum Corporation announced that the acquisition has been completed and the company is to delist from the OTCBB and the TSX Venture Exchange at the close of business on 09/08/06.