CEPSA takes over Coastal Energy Co. For CAD2.3 billion
Spanish petroleum company CEPSA has acquired international oil and gas producer Coastal Energy Co. for about CAD2.3 billion (USD2.21 billion) including debt.
According to Reuters, the buyout deal would increase the Spanish multinational oil and gas company's exploration and production capabilities in Southeast Asia.
Under the deal, CEPSA will pay CAD19 in cash for every Coastal Energy share. This is a 28% premium of Coastal Energy's closing price on the Toronto Stock Exchange last Monday, the report said.
Meanwhile, investment firm Strategic Resources Global Ltd. (SRG) is also an investor. Reuters said that the takeover deal will be funded by CEPSA and SRG's available financial resources.
The deal is expected to be completed in the first quarter of 2014. CEPSA will be creating a new entity after the takeover, Reuters said.
According to its company information, CEPSA currently produces around 260,000 barrels a day and has a refining capacity of 11 million tons per year. CEPSA earned a revenue of USD26.15 billion in 2011 and has a total of USD15.39 billion assets under management. It ranked 369 in the Global 500 listing of the world's biggest companies in terms of revenue on CNN Money.