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Caracal drops plan to acquire TransGlobe Energy following Glencore takeover bid

CALGARY - Caracal Energy Inc. (LSE:CRCL) has terminated plans to merge with a Calgary company and reached a friendly deal to be acquired by Glencore Xstrata PLC. (LSE:GLEN), one of the world's largest commodities companies.

Caracal says it has paid a US$9.25-million termination fee to TransGlobe Energy Corp. (TSX:TGL) under their March 15 agreement, which had envisioned creating in independent company focused on Africa.

Instead, Glencore has agreed to pay 5.50 British pounds cash per share of Caracal, which would be delisted from the London Stock Exchange.

The president and CEO of Calgary-based TransGlobe said the company is "extremely disappointed" that it won't be combining with Caracal.

TransGlobe also said it plans to distribute the fee it received from Caracal to shareholders through a special dividend of 10 cents US per share and also to restore plans for a regular dividend equal to five cents US per share.

The Canadian Press

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