April 1, 2011 / 1:52 PM / in 7 years

UPDATE 1-Spartan Exploration says to be bought for C$229 mln

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April 1 (Reuters) - Canadian oil and natural gas explorer Spartan Exploration Ltd said it will be bought by an unnamed bigger rival for C$229 million in a discounted cash-and-stock deal.

For each share held, Spartan shareholders will get C$4.00 in cash and one share in the new exploration and production company that will be created as part of the deal.

The offer of about C$5.50 per share — assuming a net asset value of C$1.50 per Spartan share for the assets of the new company — represents a 3 percent discount to Spartan’s Thursday closing price of C$5.65.

Under the deal, Spartan will pay the acquirer a non-completion fee of C$8 million in certain circumstances.

CIBC World Markets Inc acts as financial adviser to Spartan.

Shares of Calgary, Alberta-based Spartan were up 20 Canadian cents at C$5.85 on Friday morning on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay; Editing by Don Sebastian)

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