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”.
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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.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
