The Canadian oil and gas producers Spartan Energy Corp. and Vermilion Energy Inc. closed their merger deal, in which Vermilion would acquire all of Spartan's outstanding common shares.
The deal consideration consisted of 0.1476 Vermilion shares for each outstanding Spartan share, equivalent to 27,881,450 new Vermilion shares valued at C$1.23 billion. The deal also included the assumption of C$175 million in debt, making the total consideration C$1.40 billion.
Vermilion shareholders now hold about 81.68% of the combined company, while Spartan shareholders hold the remaining 18.32%, according to a May 28 news release.
Spartan's shareholders approved the deal during a special meeting, with 96.23% of shareholder votes cast in favor of the merger, according to a separate news release. 95.85% of votes cast by minority Spartan shareholders also approved the deal. Following the special meeting, Spartan also received approval from the Court of Queen's Bench of Alberta.
Spartan shares are scheduled to be delisted from the Toronto Stock Exchange in two to three business days. The new Vermilion shares issued as part of the merger would be listed on the Toronto Stock Exchange under the symbol VET.
In addition, Vermilion extended its revolving credit facility to May 31, 2022, and increased the total facility amount to C$1.6 billion, from C$1.4 billion. The increase maintained about the same unutilized capacity prior to the merger closing.
Spartan's exploration and production activities are focused in Alberta and Saskatchewan, while Vermilion operates in North America, the Netherlands, Germany, France and Australia.
