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CALGARY, Alberta (Reuters) - Crescent Point Energy Inc (CPG.TO), Canada's No.4 independent oil and gas producer, said on Tuesday it has agreed to acquire Legacy Oil + Gas Inc LEG.TO for shares and debt worth C$1.53 billion ($1.23 billion), adding oil production in its core regions in Western Canada and North Dakota.
Crescent Point is offering 0.095 of its own shares for each Legacy share. Based on Crescent Point's closing price on Monday of C$30.00, the offer is worth C$2.85 per Legacy share.
Crescent Point said its offer was a 36 percent premium to Legacy's price prior to April 17, when the company was targeted by activist shareholders determined to place representatives on Legacy's board.
Legacy shares last traded at C$2.92 before being halted on the Toronto Stock Exchange.
Crescent Point said the acquisition, which has been approved by Legacy's board, would add 22,000 barrels of oil equivalent per day to its production. Nearly 70 percent of that production is in the company's core areas in Saskatchewan, Manitoba and North Dakota.
"Legacy's combination of high-growth resource play assets and high-quality, low-decline conventional assets are a tremendous fit with Crescent Point and are expected to enhance our long-term dividend plus growth strategy," Scott Saxberg, Crescent Point's chief executive, said in a statement.
Crescent Point said it is offering a total 18.97 million shares and will assume Legacy's C$967 million in debt.
To pay for its acquisition, Crescent Point will sell 21.06 million shares to a group of underwriters led by BMO Capital Markets and Scotiabank to raise gross proceeds of about C$600 million, though the company can issue a further 3.16 million shares if demand warrants.
Crescent Point said the acquisition will boost its production and cash flow while adding about 102.7 million barrels of established reserves.
The acquisition will raise Crescent Point's expected average production this year by nearly 7 percent to 162,500 boepd.
Crescent Point shares closed at C$29.82 on the Toronto Stock Exchange.
($1 = 1.2428 Canadian dollars)
Reporting by Scott Haggett; Editing by Richard Chang and Diane Craft