(RTTNews) - ARC Resources Ltd. (ARX.TO) and Seven Generations Energy Ltd. agreed to merge in an all-share transaction valued at about C$8.1 billion, inclusive of net debt.
The combined company will operate as ARC Resources Ltd. and remain headquartered in Calgary, Alberta.
As per the terms of the definitive agreement, Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held.
Following the close of the transaction, ARC shareholders will own about 49 per cent and Seven Generations shareholders will own about 51 per cent of the total shares outstanding.
The combination will immediately deliver accretive free funds flow per share to all shareholders, yielding synergies that are expected to deliver approximately C$110 million in annual cost savings by 2022.
The Board of Directors will consist of 11 members, made up of six directors from ARC and five directors from Seven Generations. ARC's Hal Kvisle will remain as independent Chair and Seven Generations' Marty Proctor will join the Board to serve as Vice-Chair.
Management will be led by ARC's Terry Anderson as President and CEO, ARC's Kris Bibby as Senior Vice President and CFO, and Seven Generations' David Holt as Senior Vice President and COO.
The transaction is expected to close in the second quarter of 2021.
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