On September 29, 2017, Centrica plc (Centrica) and a certain state-owned enterprise (SOE) completed the $722-million disposition of its majority-owned Canadian oil and gas exploration and production business by way of sale of 100 per cent of the partnership interests of CQ Energy Canada Partnership. CQ Energy Canada Partnership was a partnership between Direct Energy Resources Partnership (60 per cent) and an undisclosed body corporate (40 per cent). The purchaser was Canlin Energy Corporation (Canlin), a consortium of two Hong Kong-based companies MIE Holdings Corp., Can-China Global Resource Fund, and Geneva-based Mercuria Energy Group.
Centrica was represented by a legal team led by Lisa McDowell, Vice President Legal, Centrica Energy Canada, with assistance from Stikeman Elliott LLP. The Stikeman Elliott team included Fred Erickson, Kurtis Reed, Chris Nixon, Chrysten Perry, Edie Gillespie and Brandon Leitch (energy M&A), Julie D’Avignon and Kevin Guenther (tax), Geoffrey Holub and David Price (litigation), Allison Sears (energy regulatory), Gary Clarke, Kris Noonan, Cheryl Rea and Natasha VandenHoven (employment) and Michael Kilby (competition & foreign investment).
The SOE was represented by Wayne Fedun, Ryan Keays (energy M&A), Dion Legge (tax), Rujuta Patel (competition) and Bernette Ho (employment) of Norton Rose Fulbright Canada LLP.
Canlin was represented by Toby Allan, Courtney Burton, Byron Reynolds, Kim Martyn (energy M&A), Barry Zalmanowitz (competition), Sandy Walker (foreign investment), Dan Collins and Matthew Potts (energy regulatory), and Barbara Johnston and April Kosten (employment) of Dentons Canada LLP.
Canlin entered into a syndicated credit agreement providing for certain credit facilities in order to fund the transaction and was represented by Cameron Hughes (corporate) and Peter Birkness and Audrey Bouffard-Nesbitt (financial services) of McCarthy Tétrault LLP.