Sinopec International Completes Acquisition of Daylight Energy for $2.1 Billion to Expand its Unconventional Assets

GlobalData, February 2012, Pages: 9

Sinopec International Completes Acquisition of Daylight Energy for $2.1 Billion to Expand its Unconventional Assets - Deal Analysis from GlobalData

Summary

Sinopec International Petroleum Exploration and Production Corporation (Sinopec International), a wholly owned subsidiary of China Petrochemical Corporation, (Sinopec) completed the acquisition of all of the issued and outstanding common shares of Canadian oil and gas company Daylight Energy Ltd., (Daylight Energy) for a purchase consideration of CAD2,200m ($2,117.3m) in cash. The consideration represents a 43.6% premium over the 60-day weighted average trading price of the common shares on the Toronto Stock Exchange up to and including October 7, 2011.

Canaccord Genuity Corp. acted as exclusive financial advisor to Daylight Energy in the transaction. CIBC World Markets Inc. acted as financial advisor to Daylight’s board of directors in the transaction. Blake, Cassels & Graydon LLP acted as Daylight Energy’s legal advisors. Barclays Capital Inc. acted as financial advisor to Sinopec International, and Vinson & Elkins L.L.P. and Bennett Jones LLP acted as legal advisors to Sinopec International in the transaction.

The transaction enables Sinopec International to expand its unconventional oil and gas assets.

The transaction implies deal values of $57,513.45 per boe of daily production, $29.8 per boe of 1P reserves and $16.42 per boe of 2P reserves.

Scope

- Rationale behind Sinopec buying Daylight Energy in Alberta (Canada)
- Strategic benefit to Companies involved in the transactions
- Geography covered - Alberta (Canada)

Reasons to buy

- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures taking place in the unconventional oil and gas in Canada.

Keywords

Sinopec, Daylight Energy, shale, oil, gas, Alberta, Canada, China

1
1

1.1 List of Tables
1.2 List of Figures
2 Sinopec International Completes Acquisition of Daylight Energy for $2.1 Billion
2.1 Deal Overview
2.2 Deal in Brief
2.3 Deal Background
2.4 Daylight Energy Management Decided to Sell Off the Company Amidst Falling Gas Prices and Liquidity Pressure
2.5 Sinopec: Making International Acquisitions to Ensure Energy Security
2.6 Sinopec International Petroleum has Bought Daylight Energy at a Premium
2.7 Deal Financials and Valuations
3 Appendix
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer

1.1 List of Tables
Table 1: Sinopec International, Asset Transactions (Announced / Completed), 2011 - 2012
Table 2: Alberta, Asset Transactions Details, July 2011 - December 2011
Table 3: Companies Involved
Table 4: Financials of the Deal
Table 5: Advisor Information
Table 6: Target Information
Table 7: Target’s Financial Information
Table 8: Share Price Information
Table 9: Company Valuation Multiples
Table 10: Target’s Production and Reserves Information
Table 11: Company Valuation Multiples
Table 12: Commodity Prices in $, Last Close
Table 13: Acquirer Information

1.2 List of Figures
Figure 1: Daylight Energy, Contribution of Natural Gas to Total Production and Total Revenue, Percentage, Q3 2011
Figure 2: Daylight Energy, Working Capital, CADm, 2006 - 2010

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