CEPSA all set to acquire Coastal Energy Company for C$19.00 per Share (Power)

Coastal Energy Company ("Coastal" or the "Company") has announced that it has entered into a definitive merger agreement providing for the acquisition by Compania Espanola de Petroleos, S.A.U. ("CEPSA") of all of the issued and outstanding shares of Coastal at a price of C$19.00 per common share in cash.

The purchase price represents a premium of 28% to the closing price of the Company's common shares on the TSX on November 18, 2013. The purchaser is a newly-incorporated CEPSA controlled entity in which Strategic Resources (Global) Limited ("SRG") is an investor. The proposed transaction has an aggregate value of approximately C$2.3 billion, including the assumption of C$51 million of net debt. The transaction, which will be completed by way of statutory merger, is expected to close in the first quarter of 2014.

Commenting on the acquisition, Randy Bartley, CEO of Coastal, said, "This transaction delivers significant and immediate value to our shareholders. Our Board of Directors is unanimous in its view that this transaction is in the best interest of Coastal Energy Company and recommends shareholders vote in favour of this transaction."

The transaction will be funded by CEPSA's and SRG's available financial resources.