A MERGER between two Canadian companies will result in a Hongkong consortium gaining control of one of the country's 20 largest oil and gas firms, which has a market value of more than $3.5 billion.
Mr Cheng Yu-tung and Mr Y.P. Doo bought nearly 40 per cent of Numac Oil and Gas for less than $500 million in March last year.
They brought in Macau casino magnate Stanley Ho and Mr Dee Shau-kee to buy nearly one quarter each of privately owned Westcoast Petroleum for $1.49 billion last April.
Under a preliminary share-exchange agreement, Numac shareholders will be entitled to one Westcoast common share for every Numac common share, leaving the consortium with 66 per cent of the nearly 84 million shares in the merged group.
The new company will continue to trade publicly under the name Numac Oil and Gas, with 250 employees based in Calgary.
''The merger will be of benefit to shareholders and a good foundation for growth and development domestically and internationally,'' said Numac president and chief financial officer Stewart McGregor.
