Breaking News; Pacific Rubiales Considering Takeover Bid By Alfa SAB and Harbour Energy

TORONTO, May 5, 2015 (CNW) Finance Colombia has learned that the Canadian petroleum company Pacific Rubiales Energy Corp. (TSX: PRE) (BVC: PREC) has entered into exclusive discussions in respect of an offer  from Mexican conglomerate ALFA, SAB de CV, and Harbour Energy Ltd. whereby they would acquire all of the issued and outstanding common shares in the capital of the company not owned by ALFA for a price of $6.50 (Canadian Dollars) per share, subject to completion of definitive documentation and final board approvals. Pacific Rubiales has substantial petroleum assets in South America, with their primary focus being Colombia. The company’s board has formed a special committee comprised of independent directors, which has hired an independent financial adviser to deliver a formal valuation in accordance with  Canadian securities law.

UPDATE: Toronto, Canada, Friday, May 8, 2015 –Pacific Rubiales Energy Corp. today confirmed that its first quarter 2015 results will be released before market open on Thursday, May 14, 2015 as planned. However, the Company will not be holding a quarterly results conference call and webcast for investors and analysts. The Company’s Corporate Presentation will be posted on the Company’s website after release of the First Quarter 2015 results. 

Together, ALFA and Harbour Energy have already completed technical, financial and legal due diligence. ALFA and Harbour Energy have agreed with the company to work toward completion of definitive documentation expeditiously. The contemplated transaction would be subject to a number of conditions and there remains a possbility that in the end, no transaction will be completed.

Mexican conglomerate ALFA currently holds 59,897,800 common shares of Pacific Rubiales, representing almost 19% of the outstanding common shares of Pacific Rubiales. Among the companies ALFA owns are the largest independent producer of aluminum engine components for the automotive industry in the world, and one of the world’s largest producers of polyester. In addition, it leads the Mexican market in petrochemicals such as polypropylene, expandable polystyrene and caprolactam. ALFA is the leading maker of cold cuts in North America and Europe, and of cheese in Mexico, as well as in information technologies and communication services for the business segment in Mexico. ALFA has participated in the hydrocarbon industry in the U.S. since 2006.

In 2014, ALFA’s consolidated revenue was over $17 billion, and EBITDA was approximately $2 billion. ALFA’s shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.

Harbour Energy is a joint venture formed byWashington, DC based private equity group EIG Global Energy Partners and the Noble Group, headquartered in Hong Kong, to own and operate a portfolio of high-quality upstream and midstream energy assets around the world. EIG makes private investments in energy and energy infrastructure around the world, and had $14.2 billion under management as of December 31, 2014. During its 33-year history, EIG has invested over $16.4 billion in the sector through more than 290 projects or companies in 34 countries on six continents. Ranked #76 in the 201 Fortune Global 500, Noble manages a portfolio of global supply chains covering a range of energy and other commodity products from over 140 locations and employing more than 70 nationalities.

Headline rendering: LNG Floating Storage Unit (CNW Group/Pacific Rubiales Energy Corp.) courtesy Pacific Rubiales