Harvest Energy Trust* (HTE.UN : TSX : $9.79), Net Change: 2.49, % Change: 34.11%, Volume: 41,800,525
Harvest has been harvested.
By way of a plan of arrangement, Harvest has agreed to a takeover offer by Korea National Oil
suspend its monthly distribution of $0.05 per unit. The transaction is subject to a non-completion fee of $100 million should the
transaction not proceed and is subject to formal KNOC board approval on or before October 29. A special meeting for Harvest
unitholders is expected to take place in mid- to late December and if approved the transaction is expected to close prior to the
end of the year. On October 9, Reuters reported that KNOC had identified five to ten oil companies overseas, each producing
50,000-100,000 barrels per day, for potential near-term acquisition. A KNOC statement submitted to the parliamentary review
said KNOC had been in talks with management teams, conducted asset due-diligence and submitted preliminary proposals.
KNOC had prioritized regions in the order of Middle East, central Asia, South America, Australia and other Asian countries,
Russia and Western Africa. Note no mention of Canada. The statement said KNOC considered this year to be the right time for
acquisitions as global stock markets had weakened due to the financial crisis. KNOC President and CEO Young-won Kang said
in a parliamentary audit, "We will make an acquisition soon." Fast forward several weeks and KNOC, who had been long
rumoured as a bidder for Canadian energy companies, announces it has acquired Harvest for $4.1 billion. In the Harvest
announcement, Kang commented, "Korea National Oil Corporation is excited about this acquisition and believes Harvest is a
perfect fit for KNOC's North American growth strategy. KNOC has ambitious plans for future growth and is committed to a
long term investment strategy in Canada." Doesn't it sound like KNOC is still on the acquisition trail in Canada?
