WHITECAP RESOURCES INC. AND VEREN INC. ANNOUNCE RECEIPT OF FINAL ORDER FOR PLAN OF ARRANGEMENT
Rhea-AI Summary
The Court of King's Bench of Alberta has granted the final order for the merger between Whitecap Resources (TSX: WCP) and Veren (TSX: VRN, NYSE: VRN). Under the arrangement, Veren shareholders will receive 1.05 Whitecap common shares for each Veren share. The transaction received shareholder approval from both companies on May 6, 2025.
The Business Combination is expected to complete on May 12, 2025, with Veren's shares being delisted from the TSX on May 13, 2025, and ceasing trading on the NYSE when markets open on May 12. Notably, Whitecap's shares will not be listed on the NYSE, and the company plans to terminate its SEC reporting obligations.
Positive
- Shareholder approval already obtained from both companies
- Final court order granted, clearing a major regulatory hurdle
- Clear exchange ratio of 1.05 Whitecap shares for each Veren share
- Quick closing timeline established, reducing uncertainty
Negative
- U.S. investors will lose NYSE listing accessibility
- Whitecap will terminate SEC reporting, reducing transparency for U.S. investors
- Veren shareholders will be delisted from both NYSE and TSX
Insights
Court approval secured for Whitecap-Veren merger with closing imminent; U.S. investors face NYSE delisting and changed reporting status.
The press release marks the final regulatory hurdle for Whitecap Resources' acquisition of Veren, with Alberta's Court of King's Bench granting the final order for their planned business combination. This approval follows successful shareholder votes from both companies on May 6, indicating strong investor support for the transaction.
The exchange ratio remains unchanged at 1.05 Whitecap shares for each Veren share, with transaction closing expected on May 12, 2025. The expedited timeline suggests the integration is proceeding smoothly, with Veren shares ceasing NYSE trading upon closing and delisting from the Toronto Stock Exchange the following day.
For U.S. investors, this transaction creates significant structural changes in their investment. Post-merger, they will own shares in a company not listed on any U.S. exchange and one that plans to terminate SEC reporting obligations. This could potentially impact liquidity for these shareholders and create complications for institutional investors with mandates requiring U.S.-listed securities in their portfolios.
With court approval secured and shareholder consent already obtained, the transaction now faces minimal execution risk. The companies have clearly defined the final steps in the process, indicating a high degree of confidence in meeting the May 12 closing target. This represents the culmination of the arrangement first announced on March 9, 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Subject to the satisfaction or waiver of the conditions to implementing the Business Combination as set out in the business combination agreement dated March 9, 2025 between Whitecap and Veren, the Business Combination is anticipated to be completed on May 12, 2025 and Veren's common shares are expected to be delisted from the Toronto Stock Exchange ("TSX") at close of markets on May 13, 2025.
Assuming that the Business Combination closes before markets open on Monday, May 12, 2025 as is currently planned, Veren's common shares will cease trading on the New York Stock Exchange ("NYSE") at such time. Whitecap's common shares will not be listed on the NYSE and Whitecap intends to terminate any reporting obligations it may have with the Securities and Exchange Commission ("SEC") as a result of this transaction. Investors in
For further information:
Grant Fagerheim, President & CEO | Craig Bryksa, President & CEO |
or | or |
Thanh Kang, Senior Vice President & CFO | Ken Lamont, CFO |
Whitecap Resources Inc. | Veren Inc. |
3800, 525 – 8th Avenue SW | 2000, 585 – 8th Avenue SW |
| |
(403) 266-0767 | (403) 693-0020 |
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to current expectations about the future, based on certain assumptions made by Whitecap and Veren. Although Whitecap and Veren believe that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking information in this press release is identified by words such as "expect", "will", or similar expressions and includes suggestions of future outcomes, including the expected acquisition by Whitecap of the common shares of Veren; the expected closing date of the Business Combination; the ability of the parties to satisfy the other conditions to, and to complete, the Business Combination; the expected delisting of Veren's common shares from the TSX and the cease of trading of Veren's common shares on the NYSE and the anticipated timing thereof; and the intention of Whitecap to terminate any reporting obligations it may have with the SEC.
Readers are cautioned not to place undue reliance on forward-looking information as Whitecap's and Veren's actual results may differ materially from those expressed or implied. Neither Whitecap nor Veren undertake any obligation to update or revise any forward-looking information except as required by law. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Whitecap and Veren and others that apply to the industry generally. Material factors or assumptions on which the forward-looking information in this press release is based include: successful closing of the Business Combination, including satisfying conditions to closing, within expected timelines.
Additional information about assumptions, risk factors, and uncertainties on which the forward-looking information is based and that could cause Whitecap's or Veren's actual results to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements are described in the joint management information circular of Whitecap and Veren dated March 28, 2025, which is available on Whitecap's and Veren's SEDAR+ profiles at www.sedarplus.ca.
View original content:https://www.prnewswire.com/news-releases/whitecap-resources-inc-and-veren-inc-announce-receipt-of-final-order-for-plan-of-arrangement-302450597.html
SOURCE Veren Inc.