Ithaca Energy makes friendly $318M bid to buy UK's Valiant Petroleum

TORONTO – Shares in Ithaca Energy Inc. (TSX:IAE) lost nearly seven per cent in heavy trading Friday after the oil and gas company announced a friendly, $318-million takeover bid for U.K.-based Valiant Petroleum plc.

Ithaca said the cash and stock offer represent a 31 per cent premium to the average closing price of Valiant shares on the AIM market of the London Stock Exchange in the 20 business days to Feb. 28.

On the TSX, Ithaca shares closed down 13 cents, or 6.6 per cent, at $1.84.

Ithaca has a volume of 7.98 million shares, making it the second most active issue on Toronto’s main board.

The Canadian-incoporated company has an office in Calgary, but is headquarted in the United Kingdom.