(EnergyAsia, September 21 2012, Friday) — Shareholders of stagnated Canadian upstream company Nexen Inc have voted overwhelmingly in favour of a proposed C$15.1 billion takeover by state-owned China National Offshore Oil Company (CNOOC).
Of the votes cast, 99% of Nexen’s common shareholders and 87% of preferred shareholders accepted CNOOC’s offer of C$27.50 a share, representing a 60% premium to the last traded price before the takeover bid was announced in July.
The company said it does not have the capital to implement some of its more ambitious projects to find and produce oil and gas around the world while shareholders are tired of holding onto its shares which have been underperforming for years.
Various polls have revealed that most Canadians are deeply opposed to CNOOC acquiring Nexen out of fear that the Chinese government could be managing the company to the detriment of their interest.
The proposed takeover must now clear the approval of the Canadian government under the Investment Canada Act. Even senior members of the government of Prime Minister Stephen Harper are wary of increased Chinese investment despite his repeated policy statements that Canada is open to business and wants to expand trade ties with China.