Petroflow To Buy Equal Energy - Quick Facts

(RTTNews) - Equal Energy Ltd. (EQU, EQU.TO) announced that the company has entered into a definitive agreement with Petroflow Energy Corporation (PED, PEF.V) and Petroflow Canada Acquisition Corp. for the cash purchase of all of the issued and outstanding common shares of equal at a price of US$5.43 per share. The total transaction value, including net debt and transaction costs, is approximately US$230 million. The merger will be completed by way of a plan of arrangement.

The arrangement must be approved by a vote of 66 2/3% of the votes cast by Equal Energy shareholders at a special meeting.

Equal Energy also announced that, following the effective date of the arrangement, Petroflow will make an offer to purchase Equal's entire outstanding C$45 million of convertible debentures within 30 days. In accordance with the terms of the indenture, cash consideration equal to 101% of the face value, plus accrued and unpaid interest, will be offered to holders of the convertible debentures, the company said.