TransGlobe's Deal With Caracal Terminated, To Reintroduce Dividend - Quick Facts

(RTTNews) - TransGlobe Energy Corp. (TGA, TGL.TO) Monday said its March 15-dated Arrangement Agreement with Caracal Energy Inc. (CRCL.L, CCAXF.PK) has been terminated after Caracal received an unsolicited 'Superior' cash offer from Swiss commodities trader and miner Glencore Xstrata Plc (GLEN.L, GLNCY, GLCNF).

Accordingly, Caracal has paid TransGlobe the reverse termination fee of $9.25 million in accordance with the terms of the agreement.

Ross Clarkson- President & CEO of TransGlobe, said, "We are extremely disappointed that such a great business combination has been scuttled before the shareholders of both TransGlobe and Caracal had the opportunity to enjoy the true potential of the assets of the combined Companies. TransGlobe will continue with its core strategy, which is to continue to grow our Egypt business and looking for accretive opportunities to enhance shareholder value."

TransGlobe, a Calgary-based, growth-oriented oil and gas exploration and development company, also announced the reintroduction of the proposed quarterly dividend announced on March 5 as well as plans to declare and pay a special dividend to shareholders.

The company intends to proceed with obtaining the required approvals for the previously announced, and subsequently suspended, dividend of $0.05/share per quarter to be paid from funds on hand.

In addition, the company will seek the required approvals to pay a special dividend of $0.10/share from the proceeds of the reverse termination fee.

Declaration and the payment of the dividends are subject to stock exchange and bank lender approval.

The timing of the declaration and payment of the dividends will be announced in due course.