Gibson Energy Inc. ("Gibsons" or the "Company"), (TSX:GEI), announced today that it has granted an option (the "Option Right") to Superior Plus LP ("Superior LP"), a wholly owned subsidiary of Superior Plus Corp. ("Superior"), and received a non-refundable payment of $412 million in cash proceeds, subject to certain adjustments, all in accordance with the terms of the previously announced option purchase agreement.
The Option Right provides Superior with an irrevocable right to acquire all of the issued and outstanding shares and units of the entities that carry on the Gibson's industrial propane businesses that operate under the Canwest and Stittco brands (the "Canwest Securities"), for nominal consideration, following satisfaction of certain conditions, including regulatory approvals. The Option Right is governed by an option agreement dated March 1, 2017, between Gibson and Superior.
Closing of the acquisition of the Canwest Securities is expected in the second half of 2017.
Proceeds from this divestiture will be used to strengthen the Company's capital structure through debt reduction and in support of the Company's previously announced 2017 and 2018 capital programs within the Infrastructure business.
Gibsons is a Canadian-based midstream energy company with operations in most of the key hydrocarbon-rich basins in North America. For over 60 years, Gibsons has delivered integrated midstream solutions to customers in the oil and gas industry. With headquarters in Calgary, Alberta, the Company's North American operations include the storage, blending, processing, transportation, marketing and distribution of crude oil, liquids and refined products. The Company also provides oilfield waste and water management services.
Source: Gibson Energy Inc.
Date: Mar 1, 2017