Crescent Point goes shopping

Crescent Point Energy is set to buy private producer Wave Energy for about C$665 million (US$615.3 million), in a bid to expand its asset base in Saskatchewan.

Under the terms of the deal with Wave, its shareholders will receive 0.21 of a Crescent Point share for each Wave share, or about C$7.28 per Wave share based on a five-day weighted average trading price of C$34.68 per Crescent Point share.

The Calgary, Alberta-based also announced a separate deal to acquire producing assets in south-east and south-west Saskatchewan for about C$259 million in cash.

The company also raised its year-end production by 16% to 51,500 barrels of oil equivalent per day. It also raised its 2009 capital expenditure budget by C$100 million to C$325 million.

Crescent Point also announced plans to sell discount-priced shares to a group of underwriters in a bid to raise capital for to fund a portion of the asset acquisitions, a reuters report said.

Crescent Point is selling 5.8 million shares at C$34.50 per share - a 3.9% discount to its closing price on the Toronto Stock Exchange on Friday.

The offering is expected on or about 15 September. It would raise gross proceeds of about C$200 million. Scotia Capital, BMO Capital Markets and CIBC are the joint lead underwriters of the bought deal.