Velvet Energy Ltd.'s extended cash offer to acquire fellow Alberta-based oil and gas producer Iron Bridge Resources Inc. expired with about 87.73% of Iron Bridge common shares tendered.
Iron Bridge shareholders received more time to tender their shares after its initial take-up on Sept. 24. About 10.29% of additional Iron Bridge common shares were tendered during the extension.
Velvet Energy said it will now proceed to acquire the rest of the Iron Bridge shares not tendered during the offer period. Iron Bridge shareholders are scheduled to approve the merger with Velvet Energy on Nov. 6 during a special meeting.
Velvet Energy offered to buy out for 84.5 Canadian cents per share, which was raised from 75 Canadian cents per share after Iron Bridge recommended its shareholders reject the offer.
Velvet Energy is focused in the liquids-rich gas and light oil window of the Deep Basin of Alberta. Iron Bridge is a Montney producer with an acreage position in Alberta.