Richmond's CHC Helicopter Corp. (TSX:FLY; NYSE:FLI) is one step closer to being acquired by American private equity firm First Reserve Corp. after the deal received Investment Canada approval. The $3.7 billion buyout was announced in late February and is expected to close at the end of July.
The deal, which is still subject to a number of conditions, including transportation regulatory approvals in Canada and Europe, is one of the largest buyouts in the global oil and gas services industry. Under the terms of the all-cash transaction, First Reserve fund will acquire all outstanding CHC Class A subordinate shares and Class B multiple voting shares for $32.68 per share for approximately $1.5 billion. It will also assume $800 million in debt and aircraft lease liabilities estimated at roughly $1.5 billion.
CHC's share price range during the past week: between $31.42 and $31.56; 52-week high: $32.35; 52-week low: $20.01.