Paramount Resources Ltd. (TO: POU.TO) proposed to purchase all common shares of MGM Energy Corp. (TO: MGX.TO) that it did not already own, MGM Energy said March 11. Paramount currently owns 54,147,432 common shares of MGM Energy, representing about 13.9% of the total issued and outstanding shares, the company added.
Per the proposal, MGM Energy’s shareholders would receive one Class A common share of Paramount for every 300 shares of MGM Energy, the company added, noting that due to Paramount’s current $45 per share trading price on TSX, this amount represents 15 cents per MGM Energy share.
Paramount Resources proposed that the transaction proceed through an arrangement under Alberta’s Business Corporations Act, the company said.
Calgary-based Paramount Resources Ltd. is a petroleum company exploring, producing and processing natural gas and crude oil.
Also based in Calgary, MGM Energy is an oil and natural gas E&P company working in northern Canada.
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