InterOil secures ExxonMobil deal approval
The Supreme Court of the Yukon has granted a final order approving the arrangement between InterOil and ExxonMobil.
The arrangement was approved by more than 91 per cent of shares voted at a special meeting held of 14 February, and has now received all the necessary approvals.
InterOil and ExxonMobil expect the transaction to be completed this week.
More than 91 per cent of the votes cast were in favour of the proposed transaction, higher than the 80 per cent that previously voted to approve the original transaction.
InterOil and ExxonMobil entered into an Amended and Restated Arrangement Agreement, which among other items, extends the outside date of the transaction to March 31, 2017.
This follows the decision by the Court of Appeal of Yukon to allow an appeal lodged by former InterOil CEO Phil Mulacek.
Under the terms of the amended agreement:
- ExxonMobil has agreed to purchase all issued and outstanding common shares of InterOil for consideration consisting of US$45 per share payable to ExxonMobil shares and a contingent resource payment (CRP). This is consistent with the consideration provided for under the arrangement agreement entered into by InterOil and ExxonMobil on July 21, 2016.
- The CRP will provide for an additional cash payment of approximately $7.07 per InterOil share each tcfe gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a cap of 11 tcfe certified resource.
- The termination fee that may become payable by the company in certain circumstances has been increased from $67 million to $100 million.