Saturn Oil & Gas to acquire Azimuth-backed Corex for C$302 million

Corex Resources has signed an arrangement agreement to be acquired by Saturn Oil & Gas, with Corex shareholders receiving C$302 million after adjusting for the company's net debt. The price is $6.31 per Corex share, payable in cash, Saturn shares or a mix, based on a deemed $7.17 per Saturn share.

The cash portion is capped at about $252.1 million and the stock portion at 6,976,128 Saturn shares, and elections are subject to pro-ration. Saturn shares issued to Azimuth, Corex's majority shareholder, will be locked up and released in three equal tranches over 18 months after closing.

Holders of roughly 72% of Corex shares, including Azimuth and all directors and senior officers, have signed support agreements and approved the deal in writing. Closing is expected by December 31, 2026, subject to court, Competition Act and TSX approvals, with a $15 million reciprocal termination fee. TPH&Co., the energy business of Perella Weinberg, advised Corex.