July 8 (Reuters) - Pacific Rubiales Energy Corp said on Wednesday that Mexican industrial conglomerate Alfa SAB de CV and Harbour Energy Ltd have dropped their plans to buy the Canadian oil and gas company.
The C$2 billion ($1.57 billion) offer, first made in May will terminate immediately, Pacific Rubiales said in a statement, adding that it is not obligated to pay a termination fee.
Pacific Rubiales did not provide a reason for the termination of the deal, which had been opposed by O‘Hara Administration Co, whose holders own 20 percent of Pacific Rubiales.
Proxy firm Institutional Shareholders Services in June had advised clients to vote “No” on the sale of Pacific Rubiales, saying that the oil producer was worth more than the offer made by Alfa and Harbour.
The opposing shareholders had launched a proxy fight to block the deal, urging other investors to vote against the offer.
Pacific Rubiales was seeking to disqualify O‘Hara from voting and had said the all-cash offer maximizes value for all of its investors.
The C$6.50 per share offer came during difficult times for Pacific Rubiales, whose shares have plunged 75 percent over the last year as crude prices fell and the company struggled under its hefty debt load.
Pacific Rubiales said it would continue with its plans to reduce costs, divest non-core assets and reduce debt.
Alfa and Harbour were not immediately available for comment.
$1 = 1.2736 Canadian dollars Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Diane Craft