Posted: Oct 8, 2011 11:45 PM by Dr. Anya Winslow
Updated: Oct 9, 2011 12:53 PM
(AP) - China's Sinopec International Petroleum Exploration and Production Corp. has agreed to buy Canadian oil and gas company Daylight Energy Ltd. for about $2.2 billion Canadian ($2.1 billion U.S.).
Daylight Energy said Sunday that purchase price amounts to a 43.6 percent premium over the average price of the company's shares over the 60 days that ended Friday.
That works out to about $10.08 Canadian a share. Daylight's shares ended trading Friday on the Toronto Stock Exchange at $4.59. The transaction must be approved by Daylight's shareholders.
The deal includes a breakup fee of $100 million.
Sinopec International is a unit of China Petrochemical Corp.
Daylight Energy is based in Calgary, Alberta.
(Copyright 2011 by The Associated Press. All Rights Reserved.)