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Royal Dutch Shell to Acquire Remaning Shell Canada Shares

 
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Royal Dutch Shell to Acquire Remaning Shell Canada Shares Can't Post
Royal Dutch Shell plc announced that it has reached agreement with and obtained the unanimous recommendation of the Board of Directors of Shell Canada on a revised offer (the 'Offer') to acquire all of the outstanding common shares of Shell Canada not owned by the Group at a cash price of C$45 per share. The Offer would value Shell Canada Limited's fully diluted minority share capital at approximately C$8.7 billion. The Group owns a 78% stake in Shell Canada Limited.

The Group intends to proceed with the Offer by way of a take-over bid by Shell Investments Limited, a wholly owned subsidiary of the Group. A copy of the take-over bid circular will be mailed to all shareholders of Shell Canada Limited early next month. The circular will contain the formal valuation of the common shares carried out by the independent valuator. The Offer, once launched, will be open for a minimum bid period of not less than 35 days.

The Offer will be conditional on more than 50 percent of the outstanding shares (calculated on a fully diluted basis) held by the minority shareholders of Shell Canada Limited being tendered as well as other customary conditions, including the absence of any material adverse change, the obtaining of any relevant regulatory approvals and the absence of any adverse litigation, proceeding or legal prohibition in respect of the Offer.

econmod
Broker / Moderator

Jan 27, 2007, 11:19 PM

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Re: [econmod] Royal Dutch Shell to Acquire Remaning Shell Canada Shares [In reply to] Can't Post
On the same day, Shell Canada announced annual earnings of $1,738 million or $2.11 per common share in 2006 compared with $2,001 million or $2.43 per common share in 2005. The decrease was largely due to the first major scheduled turnaround of the Athabasca Oil Sands Project, together with lower natural gas prices.

Fourth-quarter earnings were $223 million compared with $611 million for the same period in 2005. The decrease was mainly due to lower commodity prices and a charge for the Long Term Incentive Plan. Cash flow from operations was $2,614 million in 2006, down $422 million from 2005, due to the same factors that impacted full year earnings. Capital and predevelopment expenditures amounted to $2,426 million in 2006, excluding the acquisition of BlackRock, compared with $1,715 million in 2005. The difference was due to increased investment in growth activities in unconventional oil and gas.

econmod
Broker / Moderator

Jan 27, 2007, 11:21 PM

Post #2 of 2 (484 views)

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