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Petronas gets nod for RM18.7b friendly takeover

August 30, 2012

Shareholders of Progress Energy Resources Corp approved the acquisition of the Canada-based company.

TORONTO: Progress Energy Resources Corp’s shareholders have approved a RM18.72 billion friendly takeover of the company by Petroliam Nasional Bhd (Petronas), the Canadian natural gas producer said.

Petronas Carigali Canada Ltd, a unit of Petronas, originally offered C$20.45 per share in June, but that was raised to C$22 in July after an unnamed third party expressed interest in buying the Calgary-based company.

Progress said the latest offer was endorsed by over 99% of its shareholders on Tuesday.

The acquisition has yet to be formally approved by the Canadian government, but Progress said the regulators had not opposed the bid.

It said the two companies had received a no-action letter from the commissioner of competition under the Competition Act.

“The no-action letter confirms that the commissioner has reviewed the arrangement and concluded that she does not, at this time, intend to make an application for a remedial order under Section 92 of the act,” Progress said.

Foreign takeovers are a sensitive issues in Canada, and the federal government does not approve them until they are proved to be of “net benefit to Canada”.



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