The Toronto-listed Mart Resources on Tuesday, March 3 announced that it has entered into a letter of intent with a Nigerian independent, Midwestern Oil and Gas Company Limited. This letter discloses the intention of Mart Resources and Midwestern on a non-binding basis, to use good faith efforts to negotiate and enter into a definitive agreement.
Under the agreement, Midwestern would agree to acquire all of the issued and outstanding shares of Mart for cash consideration of CAD$0.80 (Canadian dollar) per common share by way of a plan of arrangement.
This represents a 40.3 per cent premium to the closing price and a 28 per cent premium to the 20 day Volume Weighted Average Price (VWAP) price of Mart’s common shares on the Toronto Stock Exchange on February 27, the last trading day for Mart’s common shares prior to the date of this announcement.
Mart said its board had reviewed the Letter of Intent from Midwestern and recommended that the company enter into the letter of intent and proceed with the negotiation of a definitive agreement.
During this period also, Mart and Midwestern will use good faith efforts to finalise the terms of the definitive agreement.