Mart Resources and its local partner, Midwestern Oil and Gas Company, have extended the deadline for a merger deal which would entail acquisition of the foreign firm by the indigenous firm. The extension which came at the request of Midwestern is to enable the company meet the financial requirements to consummate the deal which has crossed mutual agreement on financial implication and terms of acquisition.
Mart Resources said the two companies agreed the terms to amend the terms of the arrangement agreement dated March 15 in order to “facilitate Midwestern’s ongoing financing and satisfaction of the Midwestern financing condition contained in the Arrangement Agreement.” Midwestern advised Mart on June 12 that it was seeking an extension of the June 15 deadline provided for in the Arrangement Agreement for completion of the financing by Midwestern required by it to complete the transaction. “Midwestern has provided Mart with an updated framework agreement between Midwestern and a significant Middle Eastern group. Mart’s board of directors received a comprehensive update on the status of the Midwestern Financing including a copy of the amended framework agreement and was satisfied that, given the progress that had been made on such financing and the parties involved, it was appropriate to grant the requested extension.”
Under the amending agreement Midwestern has until July 26 to complete the financing. Both companies have agreed to continue to use their reasonable commercial efforts to complete the transaction by July 16. “If Midwestern has not completed the financing by July 26, Mart is able to terminate the arrangement and Midwestern will be compelled to provide Mart CAD$5.8 million as a reverse break fee as required under the original agreement.” The amending agreement provides for other amendments to the arrangement agreement which are required to give effect to the additional time that has been granted to Midwestern to complete its financing or which address the obligations of the parties prior to closing or closing arrangements. The transaction is worth about $400Million.