Petrochemical producer and aluminum components maker ALFA SAB de CV (ALFA), and Harbour Energy Ltd., commented on July 8 about their failed deal to acquire Pacific Rubiales Energy Corp. Toronto-based Pacific and the companies had an arrangement agreement dated May 20. ALFA and Harbour’s offer to acquire all of Pacific’s outstanding shares is no longer in effect.
Harbour, backed by Washington, D.C.-based energy investment firm EIG, and ALFA offered to buy Pacific for CA$2 million. Pacific explores and produces oil and natural gas in Colombia, including in the Llanos Basin.
"The early proxy returns suggested that a significant number of shares would be voted against our proposal," said Linda Cook, Harbour’s CEO. She added that each share would have been worth CA$6.50, and that the proposal will not be revised. Harbour agreed with Pacific to terminate the agreement, she said.
"As we stated in our communication dated June 25, 2015, we thought our offer correctly valued Pacific Rubiales," said Alvaro Fernandez, president of Mexico City-based ALFA. We are not willing to change our offer, therefore we are terminating the arrangement agreement. We remain committed to pursue opportunities in the Mexican energy sector and will decide on the alternatives we have," he added.
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