EnQuest announced on August 3, 2010 that it had entered into an Arrangement Agreement to acquire the entire issued share capital of Stratic. EnQuest now reports that it has completed this acquisition.
HIGHLIGHTS OF THE ACQUISITION
EnQuest has completed the acquisition of 272,635,224 common shares of Stratic, being all of the outstanding shares of Stratic, through a plan of arrangement (the "Plan of Arrangement") effective November 5, 2010 under the Business Corporations Act (Yukon). As announced on 3 August 2010, Stratic shareholders receive 0.089626 EnQuest Ordinary shares per Stratic share. Based on EnQuest's average closing price on the London Stock Exchange between 28 July to 2 August 2010, this equated to an offer of 17.00 Canadian cents for each existing Stratic share, and valued the issued and to be issued share capital of Stratic at approximately US $45.7 million.
It was also announced on August 3, 2010 that as part of the transaction EnQuest is refinancing Stratic's US $74.7 million net debt (as at June 30, 010).
The transaction constitutes a change of control of Stratic for the purposes of Stratic's outstanding convertible notes and convertible debentures, requiring Stratic to make offers to purchase such securities in accordance with their terms. EnQuest intends to cause Stratic to make such offers and acquire such securities for cash consideration.
All outstanding stock options of Stratic were canceled on closing pursuant to stock option termination agreements entered into with holders of all outstanding Stratic options.
As a result of the Acquisition, EnQuest has become a reporting issuer in British Columbia, Alberta and Ontario. EnQuest is subject to the reporting requirements of the Financial Services Authority of the United Kingdom and the ongoing requirements of the London Stock Exchange (collectively, the "UK Requirements"). EnQuest will comply with the UK Requirements in connection with its oil and gas activities rather than the requirements of the Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
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