Realm Energy International Corporation (RLM:CN) was recently acquired by San Leon Energy plc (SLE:LSE) for $139 million.
The agreement will see San Leon gain all of Realm's issued and outstanding shares and will pay each Realm shareholder either C$1.30 or 3.30 ordinary shares in San Leon's capital for each share he or she holds. Realm is a British Columbia-based shale gas exploration company.
Realm shareholders will control about 36.9 percent of the new venture as a result of the deal.
San Leon's Board of Directors said that it made the move in part to create a more focused shale acreage position in Poland's Baltic Basin. In addition, the board said that it might gain even more access to shale if Realm's applications for licenses in France and Spain are accepted.
The newly formed venture will have 28 licenses and concessions in seven different countries, with Poland, Albania and Morocco being the focus areas.
Natural Gas for Europe reports that the gears for this acquisition were set in motion last May when San Leon retained the services of GMP Securities to “identify, examine and consider a range of strategic alternatives available in connection with its interests in Poland.” Realm held a 100 percent interest in the Gniew concession in the Baltic Depression and 50 percent interest in both the Ilawa and Wegrow concessions.
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