CALGARY — Oil sands junior Synenco Energy Inc. has found a buyer at last, announcing Monday that French super-major Total SA will acquire the company in an all-cash deal for around $478 million.
Calgary-based Synenco has been up for sale since last May, when the company said it couldn’t afford to build its Northern Lights oil sands project — a $10.7-billion, 100,000-barrel-a-day oil sands mining and upgrader development that’s 60-per-cent owned and operated by Synenco.
“Significant new capital would be required to develop Northern Lights,” said Synenco chief executive Mike Supple in a conference call. “These resources are more valuable in the hands of a company with the capital to develop them.”
Total will pay $9 a share for Synenco, a 16-per cent premium to the company’s closing price on Friday of $7.79 per share. The boards of both firms have approved the deal, and Synenco has agreed to recommend that its shareholders accept the offer.
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