Talisman Energy (TLM) to be Acquired by Repsol for $8.3 Billion
Shares of Talisman Energy Inc. (TLM) were up +2.50 or +48.83 percent to $7.62 per share in this morning's premarket trading, after news that the company had agreed to be taken over by Spanish energy company Repsol SA REP. Talisman Energy shares closed at $5.12, up +0.83 or +19.35 percent in Monday's regular trading session.
Madrid, Spain based Repsol SA was originally the Instituto Nacional de Hidrocarburos until its founding in 1987. Repsol SA is an international energy company with operations worldwide and operates in all areas of oil and gas exploration.
Repsol's $8.00 per share cash bid for Talisman stock is a +36 percent premium from yesterday's close and a +75 percent premium from the stock's 7-day volume weighted average share price. In addition, Repsol bid $25 CAD plus accrued and unpaid dividends for Talisman preferred shares upon shareholder approval.
Chuck Williamson, Chairman of Talisman's Board of Directors stated in the company's press release that, "This deal creates significant and immediate value for Talisman stakeholders," he continued saying "Importantly, the deal underscores Repsol's strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world".
Antonio Brufau, Chairman of Repsol, said that, "Our combination with Talisman allows us to align our highly complementary portfolios of upstream assets to create a truly global company well-positioned to grow production and reserves. Talisman has strong operational capability, a highly skilled work force and we look forward to leveraging their expertise as we partner to create a stronger, more profitable and competitive organization."
Calgary will continue to be Talisman's center of operations and become one of Repsol's largest management offices, with Talisman's Canadian assets managed locally from Calgary. The transaction is still subject to Talisman shareholder approval, with the company holding a special meeting in mid February, 2015. Talisman also stated that certain executive officers and directors have already pledged to vote their shares in favor of the deal.
Talisman stock is significantly higher than its $4.29 close last Friday, but still slightly below the $8 takeover price. The deal is still subject to shareholder approval, which includes representatives of billionaire investor, Carl Icahn on Talisman's board.
Other News About Talisman Energy
Oil Search Bids for Talisman's Papua New Guinea Assets
Oil Search Ltd bid $300 million for the Talisman assets.
Talisman, Ecopetrol Report Second Oil Find in Colombia
Company reports positive results for exploratory well in Columbia.
Other Stocks in the News
SEC files to drop insider-trading case tied to Herbalife
SEC dismisses case against Canadian accused of insider trading.
Olam Buys Archer-Daniels-Midland Cocoa Unit for $1.3 Billion
Singapore state investment controlled firm to buy cocoa business from ADM.