Storm Resources Ltd. (TSX: SRX) announced on Tuesday that it has entered into a definitive agreement to be acquired by Canadian Natural Resources Limited (TSX: CNQ). The transaction is expected to close in December 2021.
In the agreement, CNRL has agreed to acquire all of the issued and outstanding common shares at $6.28 per share in an all-cash deal, which represents a 10% premium on Storm’s 10-day trading average as of yesterday. This acquisition price puts the company’s enterprise value at approximately $960 million.
The company also relayed that “the resulting transaction metric is estimated to be 7.5 times annualized funds flow in the first six months of 2021”.
While the acquisition already has the support of the company’s board, it will still be up for shareholders’ approval on a meeting expected to be held in December 2021.
Storm Resources last traded at $5.91 on the TSX.
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