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Globe says Chinese SOEs have bought Twin Butte, others

2017-05-23 07:34 ET - In the News

See In the News (C-TBE) Twin Butte Energy Ltd (2)

The Globe and Mail reports in its Saturday edition that five years after Ottawa put the brakes on a surge of foreign investment, a new wave of Chinese investors is quietly snapping up energy companies. The Globe's Jeff Lewis, Jeffrey Jones and Nathan VanderKlippe write that last fall, Shanghai Energy bought oil and gas properties from Endurance Energy, a Calgary-based producer that, unable to pay its bills, sought bankruptcy protection in the spring of 2016. It owed banks about $221-million. The deal's backers are among a new breed of Chinese investors who are plowing fresh dollars into Canadian energy firms in a takeover binge that has largely escaped public notice. Feasting on assets from debt-hobbled domestic producers and companies in receivership, a handful of well-connected Chinese financiers and oil executives have spent nearly $2-billion in a series of deals since Ottawa imposed restrictions on buying by state-owned enterprises in 2012, a move thought to have soured China on the Canadian oil patch. Spyglass Resources, New Star Energy, Twin Butte Energy, Hyperion Exploration and others have been snapped up with private Chinese capital amid the energy-industry downturn.

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