Photo supplied by Seven Generations Energy

By Canadian Press

ARC/SEVEN GEN MERGER

Shareholders approve $8.1B merger between Seven Generations, Arc Resources

Mar 31, 2021 | 1:03 PM

CALGARY – Shareholders with Seven Generations Energy Ltd. and fellow Calgary-based producer Arc Resources Ltd. have voted to approve a merger of the two companies to create Canada’s sixth largest oil and gas company.

At a brief special virtual meeting on Wednesday, shareholders with Seven Generations heard that enough shares had already been voted by proxy to carry the motion in favour of the deal, which is valued at $8.1 billion including debt. It required two-thirds approval to proceed.

At a second meeting Wednesday, ARC shareholders also approved the deal to grant 1.108 shares for each share of Seven Generations as arranged under the deal announced in February, thus valuing Seven Generations at about $2.86 billion at Tuesday’s Arc closing price of $7.76.

The deal also requires court and other regulatory approvals.

The combined company is to operate as Arc Resources and remain headquartered in Calgary. Arc chairman Hal Kvisle and CEO Terry Anderson are to continue in their roles while Seven Generations CEO Marty Proctor is to become vice-chair.

Arc and Seven Generations say they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay Arc’s quarterly dividend of six cents per share.

The merger agreement was first announced back in February.

READ MORE: Seven Generations, ARC Resources to merge in deal worth $8.1B

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