CALGARY, Alberta, June 9 (Reuters) - Hedge fund and activist shareholder FrontFour Capital Corp said on Tuesday it plans to vote against the proposed sale of troubled Canadian producer Legacy Oil + Gas to Crescent Point Energy Corp .
Connecticut-based FrontFour owns 6.8 percent of outstanding Legacy shares and said in April it planned to nominate three directors to the debt-ridden company’s board.
Crescent Point, Canada’s No. 4 independent oil and gas producer, agreed to acquire Legacy for shares and debt in a deal valued at C$1.53 billion.
Crescent Point offered 0.095 of its own shares for each Legacy share, but the value of Crescent Point shares has since fallen from C$29.82 on May 26 when the deal was announced to C$27.13 on Tuesday, pushing the offer down to C$2.58 per Legacy share.
FrontFour said it would vote against the proposed plan at Legacy’s annual and special meeting of shareholders, scheduled for June 30.
“In light of the structure of the transaction and current trading price of Crescent Point shares, we cannot support the plan of arrangement as proposed,” FrontFour portfolio manager Zachary George said in a statement.
George is the son of former Suncor Energy Inc Chief Executive Officer Rick George.
Legacy shares closed up 2.8 percent at C$2.55 on the Toronto Stock Exchange. (Reporting by Nia Williams; Editing by Jonathan Oatis)