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Spartan Energy Agrees To Be Acquired By Vermilion Energy - Quick Facts

Spartan Energy Corp. (SPE.TO) said it has entered into an arrangement agreement with Vermilion Energy Inc. (VET,VET.TO) providing for the acquisition by Vermilion of all the issued and outstanding common shares of Spartan.

Under the terms of the arrangement agreement, each Spartan share shall be exchanged for 0.1476 common shares of Vermilion. The share exchange ratio implies a value of $6.50 per Spartan share, based on the closing price of Vermilion shares of $44.04 on April 13, 2018,

The Arrangement implies a value of about $1.4 billion for Spartan, after taking into account assumption of Spartan's net debt and the payment of transaction costs. Spartan shareholders will receive an annualized dividend of $0.41 per Spartan share based on the share exchange ratio.

Spartan's current production is about 23,000 Boe per day and independently evaluated proven plus probable reserves as of December 31, 2017 were 113.5 MMBoe.

Following the Arrangement, Vermilion will have production in excess of 95,000 Boe/d and market capitalization of more than $6.6 billion.

Pursuant to the Arrangement Agreement, a non-completion fee of $40 million will be payable by Spartan in certain circumstances, including if Spartan enters into an agreement with respect to a superior proposal or if the Board of Directors of Spartan withdraws or modifies its recommendation with respect to the Arrangement.

The Arrangement Agreement also provides that a non-completion fee of $40 million will be payable by Vermilion in certain circumstances.

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