By John Lee.
WesternZagros Resources has announced that it has entered into a definitive agreement with Crest Energy International LLC and its wholly owned affiliate WZG Acquisition Ltd. ("Crest AcquireCo") to take the company private.
Crest is an affiliate of Crest Investment Company, a Houston, Texas-based principal investment company.
Under the deal, Crest AcquireCo will provide the Company with the funds necessary in order for the Corporation to acquire all of the outstanding common shares ("Common Shares") and preferred shares of WesternZagros for CAD$0.28 per share in cash, other than one Common Share held by Crest which will be acquired by Crest AcquireCo for CAD $0.28 and result in Crest AcquireCo owning 100 percent of the Company.
Simon Hatfield (pictured), CEO of WesternZagros, said:
"We are pleased to present this transaction to our shareholders.
"We have been engaged in an extensive search for financing and strategic alternatives for 18 months, hampered by the challenging capital markets for oil and gas investments given the low commodity price environment.
"We are delighted to conclude this search with the receipt of a proposal that provides a strong premium to the current share price and a fair valuation given the future risks of developing our assets over the next several years."
WesternZagros Chairman, David Boone commented:
"We are grateful to our existing shareholders for their patience through this long process. The board of directors unanimously supports the proposed Arrangement.
Our market search for alternatives made it clear that this transaction with Crest is the best alternative available to WesternZagros, as supported by a fairness opinion from TD Securities and we will be encouraging shareholders to vote in favour of it."
(Source: WesternZagros Resources)