Storm to buy Bellamont for C$82.6 million
(Reuters) - Oil and gas producer Storm Resources Ltd (SRX.V: Quote) said it would buy smaller rival Bellamont Exploration Ltd BMXa.V in a cash-and-stock deal valued at C$82.6 million, to beef up its operations in the Montney formation in British Columbia.
Bellamont stockholders can opt to receive 56 Canadian cents a share in cash, subject to a maximum aggregate consideration of C$20.0 million. They can also choose to swap each of their shares for 0.1445 of a Storm share, or to be paid in both cash and stock.
The cash part of the deal is 33 percent more than Bellamont's Thursday close.
Storm, which would also take on C$40 million in Bellamont's debt, will raise C$25 million by offering their shares at C$3.40 each in a bought deal to fund the transaction.
The deal also includes assets in the Grande Prairie area of northwestern Alberta with current production of about 2,200 barrels of oil equivalent per day (boe/d).
Bellamont shares were trading up 13 percent at 47.5 Canadian cents on Friday on the Toronto Venture Exchange.
(Reporting by Shounak Dasgupta in Bangalore; Editing by Viraj Nair)
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