UPDATE: Whitecap Resources to Buy Midway Energy; Whitecap Down 4%, Midway Jumps 11%
Whitecap Resources Inc. (WCP.TO) saw early losses today, down more than 4% at $10.09 with more than 445,000 shares changing hands.
The company announced that it has entered into an arrangement agreement providing for its acquisition of the issued and outstanding common shares of Midway Energy Ltd. (MEL.TO). Midway is a light oil weighted public company with its primary operations located in the Garrington area of Alberta where the majority of its production and reserves are focused in the Cardium formation.
Under the terms of the transaction, Midway shareholders shall receive, for each Midway common share held, at the election of the holder: $4.85 cash or 0.4802 of a Whitecap common share or a combination of cash and Whitecap Shares, subject in each case to a maximum.
Midway is sharply higher by almost 11% at $4.75. More than 752,000 MEL shares have changed hands.
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