Cequence Energy to issue more shares to buy Open Range Energy

Mon Jun 11, 2012 8:44am EDT
 
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(Reuters) - Cequence Energy Ltd (CQE.TO: Quote) raised by 3 percent the number of shares it will offer to buy Open Range Energy Corp ONR.TO, following a 15 percent drop in Cequence's share price since the companies announced the deal at the end of May.

Cequence said it will now give Open Range stockholders 1.1 shares for each share they own, instead of 1.065 shares it had offered earlier.

Based on Cequence's Friday close of C$1.07, the deal value has now fallen to C$1.18 per Open Range share, from about C$1.30, bringing the total deal value down to about C$88 million ($85.3 million).

Open Range shares closed at C$1.10 on Friday on the Toronto Stock Exchange.

Cequence expects to issue about 82.2 million shares to buy Open Range. In May, the company said it would issue 79.6 million shares.

The companies also agreed to increase the termination fee to C$4.6 million from C$3.6 million.

(Reporting by Aftab Ahmed in Bangalore; Editing by Supriya Kurane)