Vermilion Energy Inc. has entered into an agreement to acquire Spartan Energy Corp., a publicly traded southeast Saskatchewan oil and gas producer with annual production of approximately 23,000 boe/d (91-percent oil). Total consideration for Spartan is approximately $1.4 billion, comprising $1.23 billion in Vermilion shares and the assumption of approximately $175 million in debt.
Under the terms of the agreement, Vermilion will acquire all the common shares of Spartan issued and outstanding at the effective time of the acquisition. All the officers and directors of Spartan have entered into voting support agreements and agreed to vote their Spartan shares in favor of the acquisition, which includes a reciprocal break fee of $40 million.
The boards of directors of Vermilion and Spartan have unanimously approved the acquisition and recommended Spartan shareholders vote in favor of it. The deal remains subject to customary closing conditions, including receipt of applicable court, Spartan shareholder and other regulatory approvals, and is expected to close this summer.
For more information, visit www.vermilionenergy.com or call (403) 269-4884.