You are here

Repsol buys Talisman Energy

16th December 2014

Talisman Energy has entered into a definitive agreement with Repsol under which Repsol will acquire all of the outstanding common shares of Talisman for USD 8.00 per share in cash

Talisman Energy has entered into a definitive agreement with Repsol under which Repsol will acquire all of the outstanding common shares of Talisman for USD 8.00 per share in cash
The combined company will possess the financial flexibility necessary to maximize the value of Talisman's large undeveloped resource base

Total transaction value is approximately USD 13bn, including Talisman's current debt. In addition, under the transaction, Talisman will be allowed to pay aggregate cash dividends of USD 0.18 per common share prior to closing, including the dividend declared and payable on December 31, 2014.

The combination of the two companies creates a global exploration and production company with improved scale, enhanced capabilities and more attractive opportunities for future growth. The combined company will possess the financial flexibility necessary to maximize the value of Talisman's large undeveloped resource base.

"This deal creates significant and immediate value for Talisman stakeholders," said Chuck Williamson, chairman of Talisman's board of directors.

"Importantly, the deal underscores Repsol's strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world."

The purchase price for the common shares represents a 75 per cent premium to the 7-day volume weighted average share price and a 60 per cent premium to the 30-day volume weighted average price.

Antonio Brufau, chairman of Repsol, said: "Our combination with Talisman allows us to align our highly complementary portfolios of upstream assets to create a truly global company well-positioned to grow production and reserves. Talisman has strong operational capability, a highly skilled work force and we look forward to leveraging their expertise as we partner to create a stronger, more profitable and competitive organization."

Got a news tip? Email news@oilandgastechnology.net