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UPDATE 1-Pacific Rubiales to buy PetroMagdalena for C$238.8 mln
June 5, 2012 / 3:06 PM / 5 years ago

UPDATE 1-Pacific Rubiales to buy PetroMagdalena for C$238.8 mln

June 5 (Reuters) - Oil producer Pacific Rubiales Energy Corp will buy PetroMagdalena Energy Corp for C$238.8 million in cash, to bulk up its assets in eastern Llanos Basin of Colombia.

The offer of C$1.60 a share represents a premium of 28 percent to PetroMagdalena share's close on Monday.

PetroMagdalena share purchase warrants will receive 25 Canadian cents for each unexercised warrant, the companies said.

Pacific Rubiales, which has a market value of C$7.51 billion according to Thomson Reuters data, intends to finance the acquisition cost of about C$253 million with cash in hand.

PetroMagdalena has working interests in 19 properties in Colombia and over 1.2 million acres of property, including assets in Llanos basin, where Pacific Rubiales is looking to increase its assets.

Shares of PetroMagdalena were up 26 percent at C$1.58 on Tuesday on the Toronto Venture Exchange. Pacific Rubiales was up 2.5 percent.

GMP Securities advised PetroMagdalena in the deal. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian)

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