Bankers Petroleum Says Shareholder Approval can be Postponed

TIRANA, July 21

Canada’s Bankers Petroleum Ltd. declared on Thursday that if the completion of transactions with Geo-Jade Petroleum Corporation is not ready on August 2, 2016, then a further amendment to the Arrangement Agreement will be required to extend the deadline for the receipt of the SAFE approval. Bankers Petroleum Ltd and Geo-Jade signed an arrangement agreement on March 19, 2016. According to it, Geo-Jade will acquire all the issued and outstanding common shares of Bankers (“Bankers Shares”) through its affiliates at a cash price of C$2.20 per Bankers Share.
Yet, the completion of the transaction remains subject to the regulatory approval of the Chinese State Administration of Foreign Exchange (“SAFE”). Accordingly, the Arrangement Agreement has now been formally amended to extend the deadline to receive the People’s Republic of China approvals from June 30, 2016, to July 31, 2016.
“Bankers and Geo-Jade are diligently working together towards receipt of this approval before the end of July, and if received, the Arrangement Agreement provides for an automatic sixty day extension of the outside date (currently July 31, 2016, to be extended to September 29, 2016) for closing of the transaction to occur,” it was said in the press release.
Further on, it was stated that both Bankers and Geo-Jade are committed to the completion of the transaction, and such discussions are underway, inclusive of possible provisions that would enhance the commitment of the parties.
In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield, has a 100% interest in the Kucova oil field, and a 100% interest in Exploration Block “F”. Bankers is one of the largest foreign investors in Albania, but in March 2016, it agreed to be acquired by affiliates of China’s Geo-Jade Petroleum Corp for $442.34 million. According to Reuters, the Albanian government has accused Bankers Petroleum of understating earnings to avoid its 50 percent profit tax.

News Source: BP