Edition:
United Kingdom

Spartan Energy Announces Strategic Business Combination With Vermilion Energy


Monday, 16 Apr 2018 

April 16 (Reuters) - Spartan Energy Corp ::SPARTAN ENERGY CORP. ANNOUNCES STRATEGIC BUSINESS COMBINATION WITH VERMILION ENERGY INC..SPARTAN ENERGY - ARRANGEMENT IMPLIES A VALUE OF ABOUT $1.4 BILLION FOR SPARTAN AFTER ASSUMPTION OF SPARTAN'S NET DEBT AND PAYMENT OF TRANSACTION COSTS.SPARTAN ENERGY - UNDER TERMS OF ARRANGEMENT AGREEMENT, EACH SPARTAN SHARE SHALL BE EXCHANGED FOR 0.1476 COMMON SHARES OF VERMILION.SPARTAN ENERGY - SPARTAN SHAREHOLDERS WILL RECEIVE AN ANNUALIZED DIVIDEND OF $0.41 PER SHARE BASED ON SHARE EXCHANGE RATIO ($2.76 PER VERMILION SHARE).SPARTAN ENERGY CORP - PRO FORMA ARRANGEMENT, VERMILION IS EXPECTED TO HAVE AN ALL-IN PAYOUT RATIO OF <90% AND A DECLINE RATE OF <19% IN 2018.SPARTAN ENERGY CORP - SHARE EXCHANGE RATIO IMPLIES A VALUE OF $6.50 PER SPARTAN SHARE BASED ON CLOSING PRICE OF VERMILION SHARES OF $44.04 ON APRIL 13.SPARTAN ENERGY - PURSUANT TO ARRANGEMENT AGREEMENT, A NON-COMPLETION FEE OF $40 MILLION WILL BE PAYABLE BY SPARTAN IN SOME CIRCUMSTANCES.SPARTAN ENERGY - ARRANGEMENT AGREEMENT ALSO PROVIDES THAT A NON-COMPLETION FEE OF $40 MILLION WILL BE PAYABLE BY VERMILION IN SOME CIRCUMSTANCES.