After some back-and-forth regarding the consolidation of Obsidian Energy and Bonterra Energy Corp., the deal is finally moving forward. Obsidian has formally launched an offer to purchase all of the issued and outstanding common shares of Bonterra. The consideration consists of two common shares of Obsidian Energy for each Bonterra Share tendered.
Obsidian Energy and Bonterra have been in talks regarding a potential friendly business combination transaction since at least January 2019, which had stalled recently. On Aug. 31, Obsidian presented Bonterra’s board of directors with a formal nonbinding business combination proposal on the terms of the offer and requested the company respond by Sept. 4.
“I am not saying we don’t want to do a deal, but we don’t want to do a deal that they proposed at this point. It’s too much in favor of their side,” said George Fink, chairman and CEO of Bonterra. “There are a lot of positives putting the two entities together,
