$2.2 billion Chinese bid for Calgary-based oil & gas company
Posted Oct 10, 2011 8:39 am.
This article is more than 5 years old.
China’s state-backed Sinopec International Petroleum is making a bid to buy Calgary-based Daylight Energy Limited, a conventional oil and gas producer, for $2.2 billion.
Sinopec is making an all cash offer for outright control of the Canadian company which has liquefied natural gas properties in Alberta and British Columbia.
The Chinese company has interests in the oilsands — including a $4.65 billion, 9 per cent stake in Suncor — but this latest potential deal represents a change in direction for the Chinese in that they are seeking outright control of a Canadian company instead of simply a stake in it.
The deal will require approval from Canadian regulators. But Wenran Jiang, a political scientist at the University of Alberta, tells the Calgary Herald he doesn’t forsee government intervention for what he terms a moderately sized company.
Sinopec is offering $10.06 a share for the company. On Friday, shares of Daylight Energy closed at $4.59 on the TSX.
