Private energy company Cygnet Energy Ltd. has signed an agreement to buy Kiwetinohk Energy Corp. KEC-T in a deal that values the company at $1.4-billion.

Under the proposal, Kiwetinohk shareholders will receive $24.75 per share.

Shares in the company closed at $15.20 on the Toronto Stock Exchange on March 5 before it first announced a business strategy review, including a possible sale.

Kiwetinohk produces natural gas, natural gas liquids, oil and condensate.

The deal, which has been approved by Kiwetinohk’s board of directors, requires shareholder approval.

Shareholders owning 79 per cent of the company, including ARC Financial and Luminus Energy, the company’s two largest institutional shareholders, have agreed to back the deal. Please enable JavaScript to view this content.

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