Calgary Herald, 19 Nov 2009
CALGARY - Stock in Calgary-based international explorer Niko Resources Ltd. jumped by three per cent or $2.91 to $87.59 Thursday after it announced it is buying Black Gold Energy LLC, its partner in several offshore exploration blocks in Indonesia.
Niko said it will pay $310 million for Black Gold, to be raised by issuing convertible debentures to a subsidiary of Temasek Holdings, an investment company owned by the Singapore government that is the largest shareholder in the private company. The debentures will mature in three years, pay five per cent per year and carry a conversion price of $110.50 per Niko share.
Niko chairman and chief executive Ed Sampson said Temasek asked for the deal to be structured as it is so that it can potentially wind up with 5.5 per cent of Niko.
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