Canada based oil company Imperial Oil Ltd. announced its board of directors has authorized a substantial issuer bid of up to CA$1.5 billion (US$1.08B) of its common shares, according to an Oct. 27 release.
A substantial issuer bid allows companies to distribute excess cash to shareholders by purchasing shares for cancellation beyond the amounts permitted under normal course issuer bids.
ExxonMobil Corp., Imperial’s majority shareholder, has advised the company of its intentions to make a proportionate tender in connection with the offer to maintain Exxon’s proportionate ownership stake of approximately 69.9% following the offer’s completion.
The company anticipates that the terms and pricing will be determined and the offer will commence during the next two weeks with expected completion by end of December, the release stated.
Under the proposed issuer bid, shareholders who accept the offer can tender their shares through a modified Dutch auction or through a proportionate tender resulting in them maintaining their proportionate share ownership, the company stated.
Recommended Reading
Bakshani: Midstream Exhibiting M&A Fever Symptoms
2024-05-20 - East Daley Analytics identified several market factors in the midstream sector that point to further consolidation ahead.
Exclusive: Adkins on Challenged Gas Prices, Growing Crude Demand
2024-05-15 - J. Marshall Adkins, head of energy investment banking at Raymond James, details the future of natural gas prices and misconceptions about crude demand coming to an end in this Hart Energy Exclusive interview.
ConocoPhillips Looks to Scale Portfolio, But Citgo Auction Not a Factor
2024-05-15 - ConocoPhillips has a long-term ambition to boost its LNG offtake capacity to between 10 mtpa to 15 mtpa as it keeps a short-term eye on the auction of Citgo Petroleum.
Linde Doubles Production Capacity at Gulf Coast Facility
2024-05-14 - Linde’s expansion of the production capacity at its air separation facility in La Porte, Texas, will help meet growing demand for industrial gases in the area.