Nord Oil International and the North-West Oil Group Agree on Merger Terms Wednesday May 10, 9:00 am ET
MONTREAL--(MARKET WIRE)--May 10, 2006 -- Nord Oil International Inc. (Other OTC:NDOL.PK - News) announced today that the boards of directors and majority shareholders have approved and signed an Agreement on merger terms with The North-West Oil Group.
According to the company, Nord Oil International Inc. will acquire by way of a reverse merger 100% of the outstanding shares of two divisions of the North-West Oil Group, namely "North-West Oil Group-Saratov" Ltd. and Company "Neftegazenergo" Ltd. As the result of that merger, Nord Oil International shareholders will own a total of 41% and the shareholders of the North-West Oil Group will own 59% of the newly created entity to be renamed the Northwest Oil Group.
The total merged enterprise value is currently estimated at USD $1.25 billion, representing approximately $2.20 per Nord Oil International shares post merger.
The current board of directors is being changed to include 4 members appointed by the North-West Oil Group shareholders out of a total of 7 board members. Effective May 11, 2006, Mr. Makarov will have resigned his functions of President and CEO and Mr. Ernest Malyshev, President of North West Oil Group has been appointed the new President and Chief Executive Officer.
Management will proceed to fill the appropriate forms with the SEC such as the PRE 14C and 8K required to make said merger effective. Complete disclosure on the North-West Oil Group will also be provided on form 8K on or before May 15, 2006.
"We are very happy for all our shareholders. Being acquired is one thing, but joining with such a prominent oil and gas company is truly remarkable and one that will create substantial shareholder value," said Mr. Makarov, President of Nord Oil International Inc. "The combined revenues from oil production and reserves will create one of the great oil and gas companies, now and for many years to come," further added Mr. Makarov.
Posted by money? on :
yep they will be getting pretty much what their share price is right now and aurc i feel is going to drop a lil