Crescent Point set to win shareholder vote on Legacy acquisition - source

Fri Jun 26, 2015 8:55am EDT
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By John Tilak and Nia Williams

TORONTO/CALGARY, June 26 (Reuters) - Crescent Point Energy Inc is poised to prevail in a shareholder vote on its proposed acquisition of energy producer Legacy Oil + Gas Inc , according to a source familiar with the matter.

Such a vote will bring an end to uncertainty surrounding the deal since hedge fund and activist shareholder FrontFour Capital Corp said earlier this month that it will vote against the proposed acquisition. The final votes will be counted at Legacy's annual meeting on June 30 in Calgary.

Connecticut-based FrontFour said in April it owned 6.8 percent of outstanding Legacy shares and planned to nominate three directors to the debt-ridden company's board.

Crescent Point, Canada's No.4 independent oil and gas producer, said last month that it planned to acquire Legacy for shares and debt worth C$1.53 billion.

Mergers-and-acquisitions activity has been picking up in the Canadian energy patch as the impact of a drop in oil prices forces cuts in capital expenditures and production, making it harder for some small players to stay in the game.

Activists have also been eyeing the space, with Orange Capital targeting Bellatrix Exploration Ltd and West Face Capital pushing Gran Tierra Energy Inc to make changes. (Reporting by John Tilak; Editing by Chizu Nomiyama)