Pengrowth Energy to Acquire NAL Energy for $1.9 Billion - Deal Analysis


Naperville, IL -- (SBWIRE) -- 05/14/2012 -- Pengrowth Energy Corporation agreed to acquire the entire share capital of NAL Energy Corporation (formerly known as NAL Oil & Gas Trust) (NAL Energy), for a purchase consideration of CAD1,900m ($1,908.34m) or CAD8.56 ($8.6) per share, including approximately CAD600m ($602.63m) debt.

Under the terms of the agreement, NAL Energy shareholders will receive 0.86 of a Pengrowth share for each NAL Energy share (exchange ratio). The exchange ratio represents a premium of 9.7% for NAL Energy shareholders based on the closing price on March 22, 2012 (a day before the day of deal announcement). Based on the 20-day volume-weighted average prices on the Toronto Stock Exchange (TSX) of Pengrowth and NAL, the exchange ratio represents a premium of 11% for NAL shareholders. Pengrowth will also assume all of the rights and obligations of NAL Energy relating to 6.75%, 6.25% and 6.25% convertible unsecured subordinated debentures of NAL Energy maturing on August 31, 2012, December 31, 2014, and March 31, 2017, respectively. The Bank of Nova Scotia is acting as financial advisor to Pengrowth Energy and BMO Capital Markets Corp. is acting as financial advisor to NAL Energy in the transaction.

The transaction is expected to be completed on May 31, 2012, subject to approval of the NAL Energy shareholders of at least 66.06% of the NAL shares and also the approval of a majority of the votes by the Pengrowth shareholders.


- Rationale behind Pengrowth acquiring NAL Energy
- Stratigic benefits for the companies involved in the transaction
- Geography covered - Canada

Reasons to buy

- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Pengrowth and reason for acquiring NAL Energy.
- Plan project locations and project types to capitalize on the growing E&P market
- Identify the most suitable region to invest in new E&P assets

To view the detailed table of contents for this report please visit: