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By Ben Glickman
Crescent Point Energy agreed to acquire Hammerhead Energy for 21 Canadian dollars per share, the equivalent of about $15.33, in cash and stock.
Hammerhead said that the deal implies an enterprise value of C$2.55 billion, including debt, which is about a 17% premium on the five-day volume weighted average trading price of Hammerhead shares as of Nov. 3.
Each Hammerhead share will be exchanged for C$15.50 in cash and C$5.50 worth of shares of Crescent Point. The share count of Crescent Point will be based on the offering price of a concurrent offering announced by the company.
The combined company would be the seventh-largest exploration and production company in Canada, with production estimated to be over 200,000 barrels of oil equivalent per day in 2024.
The deal is still subject to approval by Hammerhead shareholders at a special meeting in late December. The acquisition is expected to close around the same time.
Write to Ben Glickman at [email protected]
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