China-based Geo-Jade offers $575 million cash to take over Bankers Petroleum

CALGARY – Bankers Petroleum Ltd. (TSX:BNK) has received a friendly takeover offer that values the Calgary-based company at $575 million, excluding debt obligations.

The directors and management of Bankers are fully supporting the offer from Charter Power and a numbered Alberta company, which are affiliates of China-based Geo-Jade Petroleum Corp.

Under the proposal, Bankers would maintain a corporate and technical headquarters in Calgary and operational offices in Albania, Hungary and Romania.

David French, the president and CEO of Bankers, says the deal would provide the company with resources to accelerate activity in Albania and provide its shareholders with a premium price compared with recent stock values.

The offer is worth $2.20 per Bankers share cash, about double the Friday closing price of $1.11 per share. The stock hit a 52-week high of $3.83 last April but fell to as low as 60 cents in January.

The deal requires approval of two-thirds of the votes cast by Bankers shareholders. Each side has agreed to pay US$20 million to the other in certain circumstances if the deal doesn’t go through.

Bankers will reschedule its previously announced general meeting and hold a special meeting before the end of May.