PE-backed Velvet Energy to acquire Iron Bridge for $142 mln

Velvet Energy Ltd has agreed to acquire the issued and outstanding common shares of Iron Bridge Resources Inc (TSX: IBR), a Calgary-based oil and gas company focused on a Montney Oil play in Western Canada, for about $142 million in cash, including net debt. Iron Bridge accepted the revised $0.845 per share offer from Velvet, which improves on a $0.75 per share proposal made earlier this year. Iron Bridge shareholders, directors and officers accounting for about 35 percent of the company's shares agreed to support the deal. Velvet, a Calgary-based oil and gas explorer and producer, is backed by Warburg Pincus, Trilantic Capital Partners, 1901 Partners Management and Canada Pension Plan Investment Board.

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