Brief: Obsidian Energy Proposes Combination Transaction To Bonterra Energy

Obsidian Energy

31/08/2020 11:16

Aug 31 (Reuters) - Bonterra Energy Corp  BNE.TO :
    * OBSIDIAN ENERGY PROPOSES COMBINATION TRANSACTION TO
BONTERRA
ENERGY CORP
    * OBSIDIAN ENERGY LTD -  FAILED TO MAKE ANY MEANINGFUL
PROGRESS
ENGAGEMENT BETWEEN CO, BONTERRA ENERGY CORP
    * OBSIDIAN ENERGY LTD -  FAILED TO MAKE ANY MEANINGFUL
PROGRESS
WITH BONTERRA ENERGY, IN PART, DUE TO BONTERRA'S DESIRE TO HAVE
CO SIGN A "STANDSTILL"
    * OBSIDIAN ENERGY LTD -  ENVISION A SHORT PERIOD OF
EXCLUSIVITY
FOR CO, BONTERRA ENERGY TO CONDUCT ANY ADDITIONAL DUE DILIGENCE
    * OBSIDIAN ENERGY -  ENVISION SHORT PERIOD OF EXCLUSIVITY
FOR CO,
BONTERRA TO NEGOTIATE CUSTOMARY, APPROPRIATE DEFINITIVE
TRANSACTION DOCUMENTATION
    * OBSIDIAN ENERGY -  IF BONTERRA BOARD FEELS MARKET CHECK OR
SIMILAR PROCESS IS NECESSARY, CO IS PREPARED TO PERMIT A
"GO-SHOP" PERIOD
    * OBSIDIAN ENERGY LTD - LOOK TO BONTERRA ENERGY CORP'S
RESPONSE TO
PROPOSED COMBINATION TRANSACTION IN ANY EVENT ON OR BEFORE
SEPTEMBER 4
    * OBSIDIAN ENERGY - ABSENT EXPEDITIOUS ENGAGEMENT BY
BONTERRA OVER
COMING DAYS, CO IS PREPARED TO PURSUE ALL OPTIONS TO CONSUMMATE
PROPOSED TRANSACTION
    * OBSIDIAN ENERGY -  FORESEE THAT PRO FORMA ENTITY FROM
PROPOSED
TRANSACTION WITH BONTERRA WOULD LOOK TO BENEFIT FROM A STABLE
BALANCE SHEET STRUCTURE
    * OBSIDIAN ENERGY LTD - BOARD WOULD BE PREPARED TO OFFER AN
EXCHANGE RATIO OF 2.0 COMMON SHARES OF CO PER COMMON SHARE OF
BONTERRA
    * OBSIDIAN ENERGY LTD - WILL CONSIDER AN INCREASED EXCHANGE
RATIO
IN EVENT BONTERRA IS ABLE TO DEMONSTRATE ADDITIONAL VALUE

Source text for Eikon:  ID:nPnblWfVWa 
Further company coverage:  BNE.TO 

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