Yanchang Petroleum International would acquire Novus Energy for CAD 232 million or USD 220 million. In a statement, Novus Energy said Yanchang would be paying CAD 1.18 per share for the acquisition. This would be at a 42% premium than Novus Energy's most recent closing price. Yanchang would sell USD 206 million in convertible bonds to Shannxi Yanchange Petroleum Group Co, its parent firm, to help fund the acquisition. In August, Novus said it would complete a strategic review of the transaction.
The purchase would increase Yanchang's oil assets. In the three months that ended in June, Novus Energy's quarterly report revealed that it was able to produce 3,452 barrels of oil a day. This represented a 20% increase in production compared to the same period last year.
Yanchang's deal with Novus would be the biggest acquisition of a Canadian oil and gas firm after Cnooc Ltd bought Nexen in March. Cnooc took over Nexen in March in a USD 15.1 billion deal.
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