Published By: PM NEWS Live
14th April, 2014
Mining company Glencore Xstrata said it agreed to buy Chad-focused oil company Caracal Energy (CRCL.L) for about 800 million pounds, in a deal which will involve Caracal abandoning a merger with Canada’s TransGlobe Energy.
Glencore’s 550 pence per share agreed bid for Caracal represents a 61 percent premium to Caracal’s closing share price on Friday.
Caracal and Glencore have been partners in an oil field in Chad since 2012 and Glencore has paid TransGlobe a break-fee of $9.25 million (5.53 million pounds) under the terms of the previous deal.
Shares in Caracal traded up 58 percent after the announcement on Monday to 543.25 pence.
.Reuters
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