Sinopec Buys Canada’s Daylight for $2.1 Billion to Gain Shale-Gas Assets |
| Bloomberg - Oct 10, 2011 |
China Petrochemical Corp., the nation’s biggest refiner, agreed to buy Daylight Energy Ltd. (DAY) for C$2.2 billion ($2.1 billion), gaining Canadian oil and shale-gas reserves in its largest acquisition this year.
The state-owned company known as Sinopec Group offered C$10.08 a share in cash, Calgary-based Daylight said in a statement yesterday. That’s 70 percent higher than Daylight’s average price over the past 20 trading days and more than double the average 32 percent premium for comparable cash bids for North American energy explorers, data compiled by Bloomberg show.
The deal would give the Beijing-based company access to more than 300,000 acres of land in areas rich with oil and natural gas, adding to its expansion outside Asia after falling crude prices made valuations attractive. Sinopec Group and Cnooc Ltd. (883) are among Chinese companies that have bought almost $30 billion of Canadian assets in the past five years to meet energy demand in the world’s fastest-growing major economy and gain access to new drilling technologies to potentially unlock vast resources in Asia.
Read Full Article from Bloomberg
- Posted: 2011-10-10 13:31:27
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