SPGYF - Whitecap to buy TORC in C$565M deal plans 6% dividend hike

Whitecap Resources (SPGYF) agrees to buy TORC Oil & Gas (VREYF) for C$565M (US$430.8M) in an all-stock deal, plus the assumption of C$335M in TORC debt.Under the deal terms, TORC shareholders will receive 0.57 shares of Whitecap in exchange for each TORC share, representing a 4.3% discount to TORC's last closing price.Whitecap President and CEO Grant Fagerheim says the size and scope of the combined entity, which is forecast to produce ~100K boe/day, would help it withstand the continued uncertainty due to demand shocks caused by the pandemic.Whitecap also plans to increase its monthly dividend by 6% as a result of the deal, to $0.01508/share from $0.01425, effective in March 2021."Whitecap Resources remains one of the best oil and gas plays on the market," Graham Grieder writes in a bullish analysis published recently on Seeking Alpha.

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Whitecap to buy TORC in C$565M deal, plans 6% dividend hike