Anglo Canadian Oil Corp. (TSXV:ACG) and Tallgrass Energy Corp. announced that they have entered into a definitive agreement to amalgamate and form a junior exploration and production company focused on light oil and able to produce 600 barrels of oil equivalent per day.
As quoted in the press release:
A joint information circular is anticipated to be mailed to the shareholders of Tallgrass and Anglo in September 2012 in connection with a meeting of such shareholders expected to be held in October or early November 2012, with closing of the Amalgamation expected to take place shortly thereafter. The Transaction will be completed by way of a Plan of Arrangement (the “Arrangement“) whereby Anglo and Tallgrass will amalgamate to form an amalgamated entity (“New Tallgrass“) to be renamed Tallgrass Energy Corp.
Tallgrass shareholders will exchange each of their issued and outstanding common shares (“Tallgrass Common Shares“) for one common share of New Tallgrass and Anglo shareholders will exchange their issued and outstanding common shares of Anglo (“Anglo Common Shares“) on the basis of 14.4887 Anglo Common Shares for each New Tallgrass common share.