General News | Deals - Acquisition, Mergers, Divestitures
Obsidian Files Hostile Takeover Bid for Cardium-Focused Rival Bonterra
Print
|
Obsidian Energy Ltd. is moving forward with its hostile takeover of Cardium-focused rival Bonterra Energy Corp.
Obsidian intends to purchase all of the issued and outstanding common shares for consideration consisting of two common shares of Obsidian for every one share of Bonterra.
The Offer is open for acceptance until 5:00 p.m. (Mountain Standard Time) on January 4, 2021, unless extended, accelerated or withdrawn.
Assets
The combined entity would have 35,000 boe/d of oil-weighted production, more than three times the size of Bonterra as at Q2 2020.
Obsidian's Assets
Bonterra's Assets
Stephen Loukas, Interim President and Chief Executive Officer of Obsidian Energy, said: “We believe that our offer is a unique and compelling opportunity to create the “Cardium Champion”, with a far superior future than Bonterra could achieve on a standalone basis. By combining our companies, shareholders of both companies will benefit from a lower cost structure, improved capital efficiency and an ability to generate substantially more free cash flow than either company could alone. With increased cash flow available to accelerate debt repayment, the combined entity could achieve an improved financial position and create a clear path to significant share price appreciation.
“Since we publicly announced our interest in a combination with Bonterra, we have received encouraging feedback from a significant number of shareholders of both companies and other interested parties that reinforces our view that the combination of Obsidian Energy and Bonterra is in the best interests of both companies and their respective stakeholders. While we are pleased to be able to give Bonterra shareholders this compelling opportunity directly, we remain prepared to immediately engage with Bonterra’s Board of Directors to allow for a smooth and expeditious path to closing.”
Approvals & Advisors
The Offer has been unanimously approved by Obsidian Energy’s Board of Directors. Tudor, Pickering, Holt & Co. Securities – Canada, ULC has delivered an opinion to Obsidian Energy’s Board of Directors to the effect that, as of September 18, 2020, and based upon and subject to the assumptions, limitations, qualifications and other matters considered in connection with the preparation of its opinion, the exchange ratio in the Offer was fair to Obsidian Energy from a financial point of view.
Obsidian Energy has engaged Tudor, Pickering, Holt & Co. Securities – Canada, ULC to act as its financial advisor, Stikeman Elliott LLP, Bennett Jones LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal counsel, Kingsdale Advisors as the information agent and the depositary in respect of the Offer and Longview Communications & Public Affairs as its strategic communications advisors.
Recent Deals/Transactions
| Date Annouced | Category | Headline | Buyer(s) | Seller(s) | Value ($mm) |
|---|---|---|---|---|---|
| 02/26/2026 | E&P | Diversified Energy Extends East Texs Footprint in $245MM Sheridan Deal |
|
|
|
| 02/18/2026 | E&P | SM Energy Sells Eagle Ford Asset for $950 Million |
|
|
|
| 02/17/2026 | E&P | Ovintiv Sells Anadarko Assets for $3 Billion |
|
|
|
| 02/02/2026 | E&P | Vista Energy Acquires Equinor Non-Working Interest In Vaca Muera |
|
|
|
| 02/02/2026 | E&P | Devon Acquires Coterra Energy; Bulk Up on Permian, Adds Gas Bank |
|
|
|
| 01/16/2026 | E&P | Mitsubishi’s Strategic Entry into U.S. Shale with Aethon’s Haynesville Platforms |
|
|
|
| 12/22/2025 | E&P | Harbour Energy Enters GOM; Buys LLOG |
|
|
|
| 12/18/2025 | E&P | JAPEX Secures First U.S. Operated Position in $1.26B DJ Basin Acquisition of Verdad Resources |
|
|
|
| 12/08/2025 | E&P | Antero Resources Acquires HG Energy II for $3.9B |
|
|
|
| 12/08/2025 | E&P | Infinity Natural and Northern Oil & Gas Acquire Antero's Ohio Utica for $1.2B |
|
|
|
| Total |
|