Legacy Oil + Gas shareholders approve sale to Crescent Point

Tue Jun 30, 2015 4:43pm EDT
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CALGARY, Alberta, June 30 (Reuters) - Shareholders in Canadian energy producer Legacy Oil + Gas voted in favour of the company being acquired by Crescent Point Energy Inc on Tuesday, in a deal worth C$1.53 billion in shares and debt.

Crescent Point, Canada's No. 4 independent oil and gas producer, said last month it was planning to acquire debt-ridden Legacy, adding 22,000 barrels per day of oil production in Western Canada and North Dakota.

Under the terms of the deal Crescent Point is offering 0.095 of its own shares for each Legacy share. The deal was approved by nearly 90 percent of the votes cast at an annual and special meeting of Legacy shareholders in Calgary.

Earlier this month, hedge fund and activist shareholder in Legacy FrontFour Capital Corp said it planned to vote against the proposed sale because the value of Crescent Point shares had fallen since it was first announced.

Merger and acquisition activity has been picking up in the Canadian energy patch after the impact of a drop in oil prices left some smaller producers struggling to break even and service debt.

Legacy shares closed up 1 cent on the Toronto Stock Exchange at C$2.42. Crescent Point shares rose 13 cents to C$25.63. (Reporting by Nia Williams; Editing by Alan Crosby)