Pengrowth Energy agrees to be acquired by Cona Resources via Plan of Arrangement under the ABCA

Date Closed

January 07, 2020

Lead Office

Calgary

Value

740.00 Million CAD

On November 1, 2019, Pengrowth Energy entered into an arrangement agreement with Cona Resources in which Cona will acquire all of the outstanding common shares of Pengrowth for cash consideration of C$0.05 per share and a potential Contingent Value Payment for each share. Cona will also repay the outstanding principal amount and accrued interest of Pengrowth's credit facilities. The aggregate consideration totals approximately C$740 million.

In a time of extreme volatility in the price of Western Canadian oil, this innovative transaction enables Pengrowth to avoid CCAA proceedings while providing some consideration to shareholders and repaying its creditors substantially in full.

Cona is a prominent Calgary-based crude oil production and development company.

McCarthy Tétrault advised Pengrowth with a team led by James Pasieka that included Gordon Cameron, Michael Bennett, Melissa Colborne, and Simran Choongh (Corporate), Dominic Thérien and Michael Caldecott (Competition), and Robert Nearing (Tax).

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