Challenger Energy Group PLC's (AIM:CEG, OTCQB:BSHPF) takeover by Canada-listed Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF) has taken another step towards completion after regulators cleared several of the final conditions attached to the deal.
The two companies agreed the all-share offer in October, with the transaction to be carried out through a court-sanctioned scheme of arrangement in the Isle of Man. Challenger shareholders backed the scheme at meetings held on 26 November.
One of the key hurdles was consent from ANCAP, Uruguay’s national hydrocarbons regulator, which oversees several of Challenger’s offshore licences. That approval has now been secured. Challenger also said an exempt-transaction notice issued under its joint operating agreement with Chevron had been made without objection.
With those conditions met, the only outstanding major approval is from the TSX Venture Exchange in Canada, where Sintana is listed. That decision is expected shortly.
Revised timetable
The court had been due to consider the scheme today, 9 December, but the hearing was postponed because the ANCAP approval arrived only after the scheduled time. The sanction hearing is now booked for 12 December.
If the court signs off on the scheme and the order is filed with the Companies Registry, the companies expect the takeover to become effective on 16 December. Any further changes to the timetable will be announced to shareholders and posted on Challenger’s website.