Eagle Energy Trust has entered into an agreement with a private company (Privateco) for the acquisition by Eagle of all the issued and outstanding shares of Privateco (the "Transaction").
The Transaction is valued at approximately $30 million, including Privateco's indebtedness, and will be funded out of Eagle's existing credit facility of $110 million ($US 85 million). It will be completed by the amalgamation of Privateco with a newly incorporated Eagle subsidiary and requires Privateco's shareholder approval.
The Transaction is expected to close by the end of August 2015. Directors, officers and a number of other Privateco shareholders, owning an aggregate of more than two-thirds of Privateco's shares, have signed support agreements to vote in favor of the Transaction.