Synenco agrees to $478M takeover bid from Total
Last Updated: Monday, April 28, 2008 | 9:57 PM ET
CBC News
Almost a year after putting itself up for sale, Synenco Energy Inc. said Monday it has reached a deal with a unit of French firm Total SA to be acquired for $478 million.
Through a Canadian subsidiary, Total is offering $9 per share for Synenc, a Calgary oilsands company that owns 60 per cent of the Northern Lights oilsands project about 100 kilometres northeast of Fort McMurray.
Investors sent shares of Synenco up more than 15 per cent on the TSX to $8.97.
"These oilsands assets are more valuable in the hands of a company with a greater capacity to develop them," Synenco CEO Mike Supple said during a conference call.
Total said the move will boost its oilsands portfolio. It has a 74 per cent stake in the Joslyn Lease, located 65 km northwest of Fort McMurray.
In March, Synenco reported a net loss for the year ended Dec. 31 of $15 million, or 30 cents per diluted share. In the previous year, the company made a profit of $3.9 million, or seven cents a share.
The net loss for 2007 includes an impairment charge of $35.5 million for the Northern Lights upgrader engineering and development costs. The project was put on hold last year when the company announced it was weighing its strategic options, including a possible sale.
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