Crest Energy takes WesternZagros Resources private
On May 12, 2017, WesternZagros Resources Ltd. ("WesternZagros") announced that it entered into a definitive agreement with Crest Energy International LLC ("Crest") and its wholly owned affiliate WZG Acquisition Ltd. ("Crest AcquireCo") under which WesternZagros will be taken private. Pursuant to the arrangement agreement, which will be completed by way of a plan of arrangement under the Business Corporations Act (Alberta), Crest AcquireCo will provide WesternZagros with the funds necessary for the corporation to acquire all of its outstanding common shares and preferred shares for C$0.28 per share in cash, other than one common share held by Crest which will be acquired by Crest AcquireCo for C$0.28 and result in Crest AcquireCo owning 100% of WesternZagros. The transaction represents an implied value of approximately C$225 million for WesternZagros.
In addition to the arrangement agreement, WesternZagros and Crest AcquireCo entered into a bridge loan agreement pursuant to which Crest AcquireCo advanced a US$30 million short-term loan to WesternZagros to address the company's immediate financing requirements.
The arrangement closed on July 25 2017, after receipt of all necessary approvals, following which it ceased trading and was delisted from the TSX Venture Exchange.
WesternZagros is an international natural resources company focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in the Kurdistan Region of Iraq.
Crest is an affiliate of Crest Investment Company, a Houston, Texas-based principal investment company.
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