Canadian oil producer Strathcona Resources said on Tuesday it will go public by acquiring smaller rival Pipestone Energy Corp in an all-stock deal that will value the combined business at C$8.6 billion ($6.49 billion).
Strathcona Resources to go public
Pipestone Energy has a market capitalization of $756.83 million, according to Refinitiv Eikon data.
Strathcona said the two companies will be amalgamated to form a new corporation that will retain Strathcona's name.
Shareholders
Pipestone shareholders will receive about 9.05% of the pro forma equity in the amalgamated company, with existing Strathcona shareholders owning the rest.
Including debt, the combined company will have a market capitalization of C$11.5 billion.
($1 = 1.3243 Canadian dollars) (Reporting by Juby Babu in Bengaluru; Editing by Savio D'Souza and Rashmi Aich)