Reliable Energy Ltd. has entered into an arrangement agreement whereby Crescent Point Energy Corp. will acquire all of the issued and outstanding common shares of Reliable not already held by Crescent Point in a transaction valued at approximately $99.1 million, including net debt of $20 million at March 14, 2012.

Under the terms of the Arrangement, each common share of Reliable shall be exchanged for 0.00794 common shares of Crescent Point. Reliable shareholders will receive an aggregate value of $0.362 per common share of Reliable based on a five-day weighted average trading price per Crescent Point share of $45.61 which represents a premium of 19 percent to the closing price of Reliable common shares on the TSX Venture Exchange as at March 14, 2012. The Arrangement is expected to be tax-deferred for Canadian resident shareholders of Reliable.

Tags: Reliable Energy