Yanchang Petroleum acquires Novus Energy

Yanchang Petroleum International Limited, through its indirect wholly owned subsidiary, completed the acquisition of Novus Energy Inc., a Calgary-based oil and natural gas company with assets in western Canada.

Yanchang Petroleum is a Hong Kong listed public company principally engaged in the exploration, exploitation and operation of oil and gas fields and refined oil wholesale and retail businesses.
Shaanxi Yanchang Petroleum (Group) Co. Limited, the fourth largest oil producer in China with more than 100 years of history, is the largest shareholder of Yanchang and also controls the board of Yanchang. Yanchang Petroleum Group is principally engaged in oil and gas exploration, exploitation, processing, pipeline transportation and sales of oil and gas; chemical engineering of oil, gas and coal; machinery manufacturing, project construction, and oil and gas research and development.

The acquisition was carried out by way of a statutory plan of arrangement pursuant to which Yanchang indirectly acquired all of the issued and outstanding common shares of Novus for $1.18 in cash per share. The total transaction was valued at approximately $320 million, including $100 million of assumed debt.

Yanchang was represented by Borden Ladner Gervais LLP with a team that included Kent Kufeldt, Lily Wang and Robyn Bourgeois (corporate and M&A); Peter Bryan (oil and gas), Colin MacDonald (competition and foreign investment) and Jean-Philippe Couture (tax).

Novus was represented by Blake, Cassels & Graydon LLP with a team that included Scott Clarke, John Eamon, Olga Kary and Alison Desipio (corporate and M&A); Navin Joneja (competition and foreign investment) and Carrie Aiken (tax).