Pacific Rubiales Energy, the largest independent oil and gas producer in Latin America, has received a joint takeover approach from Mexican conglomerate Alfa Sab de CV and Harbour Energy.
Toronto-based Pacific Rubiales, in a 5 May statement, confirmed it had received a bid from Alfa and Harbour, wherein the potential buyers offered to "acquire all of the issued and outstanding common shares" in Pacific, "not owned by Alfa" for a price of C$6.50 apiece.
Pacific Rubiales was advised by Bank of America. Pacific's stock has lost some 71% over the past six months, dragged down by the oil rout.
Pacific Rubiales produces natural gas and crude oil at 90 exploration and production blocks in seven countries: Colombia, Brazil, Peru, Guatemala, Guyana, Papua New Guinea and Belize.
Alfa has interests in oil and gas, petrochemicals, branded foods, auto components, information technology and telecommunications services. It has a market capitalisation of 164.7bn Mexican pesos (£7.07bn).