Progress Energy to decide on Petronas' US$5.2b offer Aug 28 (

KUALA LUMPUR: Progress Energy Resources Corp will decide whether to accept Petroliam Nasional Bhd (Petronas)'s C$5.2 billion (RM16.2 billion) proposed acquisition of the company at a meeting between its shareholders and debenture holders on August 28.


"Progress Energy and Petronas have decided to increase the considerations that shareholders and debenture holders of the company were meant to receive if the special resolution on the acquisition is approved at the meeting on that date," a spokesperson with the Canadian natural gas company told Business Times.

Last week, Progress Energy had announced that Petronas has agreed to raise its offer to buy the Canadian natural gas producer by 8 per cent after Progress Energy received an unsolicited proposal from an undisclosed third party.

Petronas, which in June launched a C$20.45 (RM63.79) per share offer for Progress Energy, will now pay C$22 (RM68.62) for each share or C$5.17 billion (RM16.13 billion) in total.

On July 27, Progress Energy entered into an amending agreement with Petronas International Corp Ltd and Petronas Carigali Canada Ltd, which provides for the acquisition by the purchaser of all the outstanding common shares of Progress Energy and the acquisition by Progress Energy of all of the outstanding 5.25 per cent convertible unsecured subordinated debentures of Progress Energy due October 31, 2014 and the 5.75 per cent series B convertible unsecured subordinated debentures of Progress Energy due June 30, 2016.

"Thus, under the new arrangement, holders of 2014 debentures will receive, for each C$1,000 (RM3,119) principal amount, about C$1,265 (RM3,945), instead of C$1,202 (RM3,749). And holders of 2016 debentures will receive about C$1,213 (RM3,783) instead of C$1,162 (RM3,624)," the spokesperson said.

In a statement, Progress Energy said its board of directors has unanimously determined that the amended arrangement is in the best interests of Progress Energy and is fair to shareholders and debentureholders.

The arrangement is expected to conclude by September 25, 2012 subject to obtaining shareholder and court approval and the required governmental and regulatory approvals and satisfying other usual and customary conditions contained in the arrangement agreement.