CNOOC Ltd. has completed the acquisition of Canada-based Nexen Inc. Pursuant to the plan of arrangement, holders of Nexen common shares will receive cash proceeds of US $27.50, without interest, and holders of Nexen preferred shares will receive cash proceeds of CAD $26.00, plus accrued and unpaid dividends up to, but excluding, the closing date of the Arrangement, without interest.
While initially challenged in the US, the deal received approval under the terms of the Investment Canada Act by the Honourable Christian Paradis, Minister of Industry, in early December.
Kevin Reinhart will continue as CEO of Nexen and will maintain responsibility for all of Nexen's operations. The company's Calgary headquarters will continue to be responsible for managing all of Nexen's existing assets as well as CNOOC Limited's North and Central American assets.
Nexen's common and preferred shares are expected to be delisted from the Toronto Stock Exchange in a few trading days. Nexen's common shares are expected to cease being traded on the NYSE prior to the market opening on February 26, 2013, and will subsequently be delisted.
Nexen’s New board
Following the completion of the transaction, Nexen established a new board of directors comprised of representatives of CNOOC Limited and Nexen, as well as independent directors. Li Fanrong has been appointed chair of the board of Nexen. Li Fanrong is the CEO of CNOOC Limited, and has more than 28 years of experience in the oil and gas industry including in the North Sea. The other directors serving on the Nexen Board are Fang Zhi, vice president CNOOC Limited, Kevin Reinhart, Barry Jackson, Thomas O'Neill and William Berry.