Tidewater Midstream and Infrastructure Ltd. entered an agreement with private company vendors to acquire their 63% operated working interest in a gas processing facility and pipelines in the West Pembina area of central Alberta for CA$180 million, the company said June 16.
The purchase price is comprised of CA$170 million in cash and CA$10 million in common shares priced at CA$1.35 each. The acquisition is scheduled to close July 3 and is subject to standard closing conditions including TSX Venture Exchange approval, the company said.
Tidewater closed the private placement of about 155.5 million subscription receipts, priced at CA$1.35 each, for about CA$210 million in gross proceeds, the company said.
Each receipt gives the holder one Tidewater common share when the West Pembina acquisition closes, the company said. Gross proceeds from the receipts’ sale will be held in escrow by a subscription receipt agent and invested in short term obligations issued or guaranteed by the Canadian government when all conditions are met.
The receipt offering was co-led by CIBC World Markets Inc. and Macquarie Capital Markets Canada Ltd. National Bank Financial Inc., FirstEnergy Capital Corp., GMP Securities LP, Canaccord Genuity Corp., Acumen Capital Financial Partners Ltd., Beacon Securities Ltd., Desjardins Securities Inc. and EdgeCrest Capital Corp. were the underwriters. They exercised their option to purchase about CA$50 million of additional receipts, Tidewater said.
Closing of the offering is subject to TSX Venture Exchange approval. The securities offered will have a hold period until October 17.
Tidewater Midstream and Infrastructure Ltd. is based in Calgary, Alberta.
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