Talisman Energy informs that it has entered into a definitive agreement with Repsol under which the Spanish energy giant will acquire all of the outstanding common shares of Talisman for US$8.00 (C$9.33) per share in cash.
The purchase price for the common shares represents a 75% premium to the 7-day volume-weighted average share price and a 60% premium to the 30-day volume-weighted average price. Total transaction value is approximately US$13 billion, including Talisman’s current debt. In addition, under the transaction, Talisman will be allowed to pay aggregate cash dividends of US$0.18 per common share prior to closing, including the dividend declared and payable on December 31, 2014.
The combination of the two companies creates a global E&P company with improved scale, enhanced capabilities and more attractive opportunities for future growth. The combined company will possess the financial flexibility necessary to maximize the value of Talisman’s large undeveloped resource base.
The transaction is targeted to close in the second quarter of 2015, according to a Talisman statement.
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Press Release; Image: Talisman Energy