Xtract Energy shares suspended after Elko purchase

21st Jun 2011 09:26

Energy and mineral investor Xtract Energy has offered to acquire the remaining shares of Canada's Elko Energy that it does not already own in a stock deal, with no cash consideration. According to the deal terms, Xtract will offer seven of its shares for every Elko share, which will result in Xtract issuing about 350m new ordinary shares to Elko's shareholders. Furthermore, in line with AIM listing rules, shares of Xtract Energy have been suspended as the transaction is deemed to be a reverse takeover. Upon completion of the deal, the company, which will no longer be an investing firm, will apply for readmission to AIM as an operating company, it said in its statement. "We have focused our time on rebalancing the asset portfolio of the company and the acquisition of Elko is the logical next step in this process," Xtract's chief executive officer Peter Moir said.AR