The merger, valued at
He says the only criticism he's heard of the deal proposed in February is that it will reduce investment options by one for those looking for high-quality choices to diversify their energy company portfolios.
To proceed, the deal requires approval at virtual meetings today by holders of two-thirds of the shares in Seven Generations and a simple majority of the shares voted by ARC shareholders, along with their approval of the issuance of ARC common shares, plus court and other regulatory approvals.
The combined company is to operate as
Arc and Seven Generations say they expect to generate cost savings from synergies of about
"We've seen several acquisitions and M&A activity in the past three to six months. This is probably the first time that we've seen a strong-versus-strong acquisition proposition, from my perspective, anyway," said Kwong in an interview, adding the usual pattern is for stronger companies to buy weaker ones.
The merged company is to be
Overall combined production is expected to total more than 340,000 barrels of oil equivalent per day this year, composed of about 138,000 barrels per day of liquids like condensate and 1.2 billion cubic feet per day of natural gas.
The companies are among the largest drillers into the
This report by
Companies in this story: (TSX:VII, TSX:ARX)
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