Petronas to buy Canadian Progress Energy for $5.36 billion
KUALA LUMPUR -- Malaysia's state-owned oil-and-gas company Petronas has agreed to buy Canada's Progress Energy Resources in a deal worth about US$5.36 billion, marking the latest foray into the North American energy patch by an Asian firm.
Petronas, which already has a joint venture arrangement with the Canadian natural-gas producer, said it's offering C$20.45 a share for Progress, a 77% premium to the Calgary company's closing price Thursday. the company said it would also pay an undisclosed amount for Progress convertible debentures, bringing the deal's total value to C$5.5 billion.
In April, Petronas said it was considering a major acquisition in Canada, prompting Progress to issue a statement saying it wasn't in talks with Petronas outside of its joint-venture deal.
Petronas is one of several Asian companies involved in one of a handful of consortiums that plans to export natural gas from Canada to Asian markets. Progress is a Canadian exploration and production company focused on natural gas development in the Foothills of northeast British Columbia and the deep basin of northwest Alberta.
“The proposed transaction will combine Petronas’ significant global expertise and leadership in developing LNG infrastructure with Progress’ extensive experience in unconventional resource development to build a strong and growing world class energy business based in Canada,” said Datuk Anuar Ahmad, Executive Vice President of the gas and power business for Petronas.
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