Whitecap Resources buying light-oil producer Beaumont Energy for $587.5M

CALGARY – Whitecap Resources Inc. (TSX:WCP) has signed a deal to acquire privately held Beaumont Energy Inc. in a stock-and-cash deal valued at $587.5 million including debt.

Under the agreement, Beaumont shareholders can receive $5.62 in cash or 0.40 of a Whitecap common share for each Beaumont share they hold.

The cash available under the deal is capped at $103.4 million.

Whitecap will also assume about $70.5 million in Beaumont debt.

Beaumont has operations primarily in the Kerrobert area of west-central Saskatchewan, located nearby Whitecap’s existing operations.

Whitecap said the deal will be partially funded with a $110-million bought deal equity financing.

The company has signed a deal with a syndicate of underwriters to issue 8.149 million subscription receipts at a price of $13.50 each.

Shares in Whitecap, which announced the deal after the close of markets, were up 57 cents at $13.93 on the Toronto Stock Exchange on Wednesday.