Reliable Energy Ltd. (CVE:REL) (PINK:RELZF) stock price gaped up to represent the recent takeover agreement. Not even minor fluctuation are taking place at the time, but there’s still plenty of time until the actual sale takes place and scalpers might still get their chance.
REL stock price gaped up 14.75% on Thursday. Liquidity seems to be an issue and the trading is going pretty vaguely, yet the stock has already pulled in 10.7 million in volume, which leads to think about manipulation by market makers.
REL price increased after the company announced this morning to have entered into an arrangement agreement for Crescent Poin Energy Corp. to acquire all the outstanding shares of Reliable. The deal is valued at $99.1 million, which puts REL share price at 36.2 cents.
When the takeover takes place Reliable’s shareholders will receive 0.00794 shares of Crescent for each REL share they own. The shareholders will get their chance to vote on the transaction, but the board of directors have unanimously approved of the sale. Shareholders could also expect to receive dividends for their holdings after the transaction.
The meeting of shareholders is scheduled for May 1, 2012. The arrangement still needs approval from the stock exchange, court and regulators. The share price should be expected to stay around the current levels until the the transaction is complete.
