Parex proposes to acquire Frontera’s Colombian E&P assets for $500M

Parex Resources (PARXF) has submitted an acquisition proposal to the Board of Directors of Frontera Energy Corporation (FECCF) to acquire all of Frontera’s Colombian upstream business in an all-cash offer for consideration of $500M, plus the assumption of debt, in addition to a contingent payment of $25M with terms that are substantially the same as the existing acquisition agreement previously announced. The Proposal represents a $125M premium compared to the existing acquisition agreement. Imad Mohsen, CEO, said, “Our all-cash offer to acquire Frontera’s Colombian-based upstream business provides immediate and greater value for Frontera and its shareholders. Based on the premium offered, we expect that the Frontera Board will conclude that our Proposal will be a “Superior Proposal” as defined by the previously announced acquisition agreement. We look forward to further discussions with Frontera’s Board and Management team to finalize a transaction.”