Quebec-based NMG's multiyear supply deal with Panasonic, GM also in this week’s deals roundup
Blakes and Goodmans are acting as legal counsel in Enerplus’ approximately $5 billion (US$3.8 billion) merger with a US-based oil and gas company. Also in this week’s deals roundup is Quebec’s Nouveau Monde Graphite in its multiyear supply deal with Panasonic and General Motors.
Calgary’s Enerplus Corporation has signed a deal to be acquired by Chord Energy Corporation, a US-based oil and gas exploration and production, in a deal valued at approximately $5 billion (US$3.8 billion).
The combined company will have an enterprise value of approximately $14.79 billion (US$11 billion).
Blake, Cassels & Graydon LLP and Latham & Watkins LLP are serving as Canadian and US legal counsel, respectively, to Enerplus. Evercore is serving as the lead financial advisor to Enerplus, joined by RBC Capital Markets, BMO Capital Markets, and CIBC Capital Markets.
Goodmans LLP is serving as Canadian legal counsel to Chord, with Vinson & Elkins LLP and Wachtell, Lipton, Rosen & Katz as US legal advisors. Citi is serving as the lead financial advisor to Chord, joined by Wells Fargo Securities, LLC and J.P. Morgan Securities LLC
Enerplus President and CEO Ian Dundas said, “This transaction brings together Chord's and Enerplus' premier asset bases, operational abilities and technical acumen to create a combined company positioned to drive further success, deliver competitive returns and peer-leading shareholder distributions.”
“Enerplus' Williston Basin position brings high-quality inventory, and we are excited to leverage best practices from both companies to create a stronger, more efficient entity,” said Chord Energy’s President and CEO Danny Brown. “The combined company is expected to benefit from improving returns, capital efficiency, low-cost inventory, and a peer-leading balance sheet, all of which support sustainable free cash flow generation and meaningful shareholder returns. We believe the combined company will continue to benefit the communities in which we operate in North Dakota and Montana, including the Fort Berthold Reservation.”
Upon deal completion, Chord and Enerplus shareholders will own 67 percent and 33 percent of the combined company, respectively.
The deal is expected to close by mid-year 2024.
Montreal-based Nouveau Monde Graphite (NMG) announced two major binding offtake deals with Panasonic Energy and General Motors.
Through these agreements, NMG will provide each customer with 18,000 tonnes of active anode material per year from its proposed battery material processing facilities in Bécancour, Quebec.
The supply deals with GM and Panasonic have initial terms of six and seven years, respectively. Together, the two businesses have also decided to invest an initial US$50 million in NMG, with an additional US$275 million to follow.
Combined, these agreements mark the beginning of NMG’s full-scale “Phase 2” construction of its Bécancour plant and Matawinie graphite mine.
The production is expected to begin in mid-2027.
TELUS, Amazon Web Services (AWS) and Samsung Electronics Co., Ltd. are collaborating to create the first virtual roaming gateway in North America.
Through the partnership, TELUS will become the first telecommunications provider in North America to offer a new method of connecting for customers traveling abroad. TELUS is housing its network with AWS Regions worldwide, using virtualized gateways. With this approach, roaming traffic like voice, data, and SMS, will be routed directly to the closest AWS Region instead of through Canada, resulting in improved reliability, speed, and latency of mobile services.
“This architecture evolution further strengthens TELUS' commitment to keeping our customers connected to what matters most, ensuring they are able to enjoy the same award-winning experience they have in Canada from anywhere in the world,” said TELUS CTO Nazim Benhadid. “Together with AWS, Samsung and ng-voice, we are making roaming more reliable and resilient than ever.”
“We are thrilled to work with TELUS, a company at the forefront of re-inventing the telco customer experience,” said AWS Telco Business Unit General Manager Chivas Nambiar. “Alongside our AWS Partners, we are excited about how TELUS is using the cloud to augment their network capabilities to provide consistent and reliable global services for their customers.”
“Samsung's Cloud-native Core is designed with flexibility and scalability in mind,” said Samsung Canada Vice President and Head of Networks Stephen Wiktorski. “By ensuring higher stability and reliability, Samsung powers TELUS' new roaming approach to bring unmatched network performance and customer experiences while traveling. By working with forward-looking operators like TELUS, we are able to turn never before seen possibilities into reality.”
The trials for the virtual roaming gateway are expected to begin in the first quarter of 2024.
H&R Real Estate Investment Trust has agreed to sell on a private placement "best efforts" agency basis, to a syndicate of agents co-led and bookrun by CIBC World Markets Inc., Scotia Capital Inc. and National Bank Financial Inc. and including BMO Capital Markets, RBC Dominion Securities Inc. and TD Securities Inc., $250 million principal amount of senior unsecured debentures.
The offering is expected to be completed on February 28, 2024, subject to customary closing conditions.
The net proceeds of the offering will be used for the repayment of outstanding indebtedness and for general trust purposes.
Mississauga-based goeasy Ltd. announced the pricing of US$400 million aggregate principal amount of 7.625 percent senior unsecured notes due 2029. The Notes will be guaranteed on a senior unsecured basis by certain of goeasy's current and future subsidiaries.
The net proceeds from the offering are estimated to be approximately $532 million.
The offering is expected to be completed on February 23, 2024, subject to customary closing conditions.
Vertical Staffing Resources Inc. (VSR), an Ontario-based provider of specialized workforce solutions and services, has reached an agreement to acquire PeopleReady's Canadian staffing operations from US-based TrueBlue Inc.
The financial terms were not disclosed.
“Significant strategic rationale underpins this acquisition, as it not only broadens our geographical footprint across Canada but also fortifies our diversification into new industry verticals,” said VSR CEO Anthony Calce. “Importantly, it positions us to effectively meet the growing market need for on-demand labour, aligning with our commitment to address evolving workforce needs. This acquisition will create opportunities for expanded service offerings and we will leverage our technology to streamline processes and enhance the overall experience for all of VSR's clients.”
“This sale allows us to most effectively leverage our resources to maximize value and further sharpen our focus on core operations, including the many compelling and profitable growth opportunities we see in the U.S. staffing and global RPO markets,” said TrueBlue President and CEO Taryn Owen. “We are confident that Vertical Staffing Resources will be a great fit for our PeopleReady Canadian staffing business and are working closely with the Vertical team to ensure a seamless transition.”
The deal is expected to close in the first quarter of 2024, subject to customary closing conditions.
