have signed a letter agreement under which Husky will offer to acquire all
remaining shares not currently held by Husky.
Under the terms of the agreement, Husky has agreed to offer to acquire all
remaining Class A shares (approximately 14.6 million shares fully diluted) of Avid,
at a price of $5.85 per share and all of the Class B shares (approximately 843,000
shares) of Avid, at a price of $10.00 per share, for a total consideration of
approximately $93.8 million.
The offer represents a premium of approximately 23 per cent over Avid's 30-day
average closing price of the Class A shares prior to announcement.
The offer will be subject to normal closing conditions, including the receipt of
regulatory approvals and holders of not less than 51 per cent of the Class A shares
(other than Husky and its affiliates) and 66.7 per cent of the Class B shares tendering into the offer. The agreement also provides for a break fee of $0.05 per
share on a fully diluted basis if terminated under certain circumstances.
Husky currently owns approximately 38 per cent of Avid, as a result of the
acquisition of Renaissance Energy in August 2000.
This agreement is subject to due diligence and the execution of a pre-acquisition agreement.
Husky Energy and Avid Oil & Gas are both based in Calgary.
