Peyto swoops for Open Range

Swooping in: Peyto offer for Open Range trumps Cequence

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Luke Johnson

 03 July 2012 17:22 GMT

Canada's Peyto Exploration & Development has swooped in to buy compatriot Open Range about a month after Cequence Energy made a play for the Deep Basin producer.

Open Range said it had received a "superior proposal" from Peyto and that it was terminating a prior agreement with Cequence inked in May. Cequence had agreed to pay about US$94.5 million in an all-stock deal to acquire Open Range.

Peyto was able to surpass that offer with a C$105.5 million (US$103.6 million) all-stock bid. Open Range decided to go with the higher offer and has paid Cequence a C$4.6 million termination fee.

According to the deal, Peyto will also assume an estimated $69.5 million of Open Range's net debt and…

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