Tourmaline Oil Corp. TOU-T +2.46%increase has signed an agreement to buy Bonavista Energy Corp. in a deal worth $1.45-billion.
Under the acquisition, Tourmaline Oil will pay $725-million in shares and $725-million in cash, less Bonavista’s net debt at closing.
Tourmaline says the deal represents an important component of the company’s ongoing consolidation strategy, adding decades of inventory and supplementing its existing Deep Basin assets in Alberta.
The deal is expected to close in the second half of November, subject to customary regulatory and stock exchange approvals.
In addition to the acquisition, Tourmaline announced that it will increase its quarterly base dividend effective in the fourth quarter to $1.12 per share on an annualized basis, up from $1.04 per share.
The Tourmaline board also declared a special dividend of $1 per share that will be paid on Nov. 1, to shareholders of record on Oct. 24.
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