Oct 16, 2023
The Daily Chase: Tourmaline Oil to buy Bonavista Energy
By Andrew Bell
Here are five things you need to know this morning:
TSX takeovers: There are a couple of takeovers of Canadian companies. Natural gas colossus Tourmaline Oil is buying Bonavista Energy for $1.45 billion, half of it in shares, less Bonavista's net debt. Reuters says Bonavista delisted in 2020 as part of a recapitalization plan. Tourmaline is also raising its base dividend by 7.7 per cent and plans a $1 per share special dividend that will be paid on Nov. 1. We’ll be joined by Tourmaline CEO Mike Rose at 11 a.m. EDT.
In other takeover news, Logistec is selling itself to Blue Wolf Capital Partners for $67 in cash per share for a total enterprise value of approximately $1.2 billion. The marine cargo handler says the deal represents 62 per cent premium to the 20-day average price as of May 19, just before the announcement of a strategic review.
Shell shares: Shares in Shell hit a record high. The company still pledges to hit net zero greenhouse gas emissions by 2050 but newish CEO Wael Sawan is directing a greater proportion of the company’s investment into oil and gas.
Oil exec in Ottawa: Suncor CEO Rich Kruger is set to appear before the House of Commons natural resources committee today after he spoke in August about refocusing the company on its oil business and reducing focus on the energy transition. Environment Minister Steven Guilbeault said the comments show why Ottawa needs to set emissions caps for oil and gas.
Rite Aid woes: U.S. drug store chain Rite Aid filed for bankruptcy as it tries to close unprofitable stores, fight off lawsuits over its role in the opioid crisis and tackle debt of roughly US$4 billion.
Coal sales: Teck reported unaudited Q3 steelmaking coal sales of 5.2 million tonnes, below its guidance of 5.6 to 6 million tonnes, citing factors such as wildfires and labour disruption at ports. Meanwhile, though, Stifel says Teck investors don’t seem to have noticed a rapid climb in steelmaking coal prices.