Pacific Rubiales scraps deal with Alfa, Harbour

OREANDA-NEWS. July 10, 2015. Canadian independent Pacific Rubiales has agreed to immediately terminate a takeover agreement with Mexico?s Alfa and Harbour Energy.

Under the proposed acquisition reached in May, Alfa and Harbour would have acquired all of Pacific Rubiales? outstanding common shares for C6.50 (\\$5.10) per share, plus debt. The estimated \\$5bn deal had been staunchly opposed by a group of minority investors led by Panama-based O?Hara Administration.

Most of Pacific Rubiales? assets are in Colombia.

Pacific Rubiales shareholders had been scheduled to meet on 28 July to vote on the proposed takeover.

"The Arrangement Agreement will terminate with no further material obligations by the Company to ALFA and Harbour Energy, including any termination/break fee or expense reimbursement," Pacific Rubiales said today. "The Company will continue with its plans to reduce operating costs, divest non-core assets, reduce debt, and continue to pursue Mexico energy opportunities with our preferred joint venture partner ALFA."

Alfa already owns about 19pc of Pacific Rubiales shares.

Harbour is a company formed by investment fund EIG Global Energy Partners and commodities trader Noble Group.