InterOil Shareholders Approve XOM Deal

Shareholders of InterOil Corp have overwhelmingly voted to approve the company's takeover by ExxonMobil. During a special meeting, more than 80% were in favor of the proposed transaction, InterOil said September 21.

The transaction is expected to close by the end of September 2016. InterOil intends to seek a final order with respect to the plan of arrangement at a hearing in the Supreme Court of Yukon, in Canada, which is scheduled for September 27, 2016.

In May, InterOil entered into a binding agreement to be acquired by Oil Search for $2.2bn, with Oil Search to sell a little over 60% to Total for $1.2bn. 

But on July 21, ExxonMobil trumped Oil Search’s bid to acquire InterOil with a $2.5bn bid. InterOil stated July 18 that ExxonMobil’s offer constitutes a 'superior proposal,' as defined in InterOil’s arrangement agreement with Oil Search. Without naming ExxonMobil, on June 30, InterOil had announced it received from a third party an unsolicited, conditional and non-binding takeover offer. 

Shardul Sharma