Canadian Natural Resources Limited entered into a definitive arrangement agreement to acquire Storm Resources Ltd. for approximately CAD 770 million.
The transaction is subject to various closing conditions, including receipt of court approval, approval by shareholders and holders of options of Storm at the meeting, holders of not greater than 5% of the outstanding Storm Resources shares shall have validly exercised Dissent Rights and certain regulatory approvals, including clearance under the Competition Act (Canada). The Board of Storm has unanimously determined that the arrangement is fair, from a financial point of view, to Storm shareholders and resolved to recommend that the securityholders vote in favour of the transaction. All of the directors and executive officers of Storm have entered into support agreements, agreeing to support the Transaction and vote an aggregate of approximately 12.6% of the outstanding Storm shares in favour of the transaction, subject to the provisions of such support agreements. Storm will seek approval of the transaction by its shareholders and holders of options at a special meeting expected to be held in December 2021. The shareholders and option holders of Storm voted to approve the transaction at a special meeting held on December 15, 2021. The Court of Queen's Bench of Alberta has also granted a final order approving the transaction. The transaction is expected to close in December 2021. The transaction does not materially impact the Canadian Natural Resources's balance sheet strength or liquidity position. Stifel FirstEnergy acted as exclusive financial advisor to Storm in connection with the transaction and has provided a verbal fairness opinion. Sony Gill, Ben Layton, Raveena Benipal, Sebastian Maturana, Julie Dâ Avignon, Gordon Masson, Allison Kuntz and Natasha Doelman of Stikeman Elliott LLP acted as legal counsel to Storm. William Jenkins of Dentons Canada LLP acted as legal counsel to Canadian Natural Resources Limited.