Canada's Zenith Energy has formalised an offer to acquire Norway's Nordic Petroleum (Nordic) by way of an exchange of equity that will expand its presence in Norway's continental shelf.
The proposed deal is structured to be for a minimum of 90 per cent of the outstanding shares in Nordic with a proposed equity exchange of 100 Nordic common shares for 1 Zenith common share. The unaudited net value of Nordic’s equity presently stands at NOK 8,800,000 (equivalent to approximately CAD$1,270,000 or £750,000).
Nordic's Board of Directors has recommended the deal to its shareholders for approval provided certain conditions and practicalities to be resolved prior to the formal offer being submitted to shareholders.
Upon completion of the proposed acquisition of Nordic, Zenith intends to use Nordic as a vehicle to pursue the acquisition of mature energy production assets, as well as for potential participation in future licensing bids organised by the Norwegian Ministry of Petroleum and Energy.