Flagged up: Sinopec's move
Sinopec shells out $7.2bn for Addax
Sinopec is set to shell out C$8.27 billion (US$7.24 billion) for Addax Petroleum after the Canadian-based outfit gave the nod to the Chinese giant's C$52.80 per share takeover offer.
The offer is a 47% premium to Addax's closing price on the Toronto Stock Exchange on 5 June, the day before it announced it was in talks with a number of companies regarding a potential takeover.
Rumours of various bidders for Addax have been touted in the market over the past month including China National Petroleum Corporation, China National Offshore Oil Corporation, Korea National Oil Company, India’s Oil & Natural Gas Corporation and Reliance Industries.
The agreement between Sinopec and Addax is still subject to approval from the Chinese government.
The deal involves a break-up fee of C$300 million, Addax said in a statement.