French oil giant Total said Tuesday it had offered $504 million in cash for Canadian UTS Energy Corporation
The offer of $1.06 per share represents a 51 percent premium over the weighted average trading price UTS Energy shares at the Toronto Stock Exchange for the last 30 days, Total said in a statement.
The takeover bid made by Total's Canadian affiliate will be open for at least 60 days and would have to be accepted by at least two-thirds of UTS shareholders.
Calgary, Alberta-based UTS has a 20 percent interest in Fort Hills oil sands project in the northeastern part of the province. The project's resources are estimated at four billion barrels of bitumen, the statement added.
The Canadian company Petro-Canada is the project's operator with a 60 percent stake. Teck Cominco holds the remaining 20 percent stake.
The project is being reevaluated to optimize costs and timing.
Author:
Ksenia Kochneva
