|By PR Newswire||
|February 11, 2014 04:59 PM EST|
VANCOUVER, Feb. 11, 2014 /CNW/ - As a result of the publicly announced unsolicited buyout offer for Longview Oil Corp. ("Longview") on February 10, 2014, and the subsequent disclosure on February 11, 2014 of the undisclosed bidder's intent on acquiring 19.8% of the issued and outstanding shares of Longview (each, a "Longview Share") through the secondary offering initiated by Advantage Oil & Gas Ltd. ("Advantage") of its 45% stake in Longview on February 4, 2014, Nawar Alsaadi, a major Longview shareholder and the owner of 3.4% of the Longview Shares, issues the following statement,
Longview has an extensive and valuable slow-decline oil weighted asset base. The Longview Shares today trade at a fraction of their true value and are in no way reflective of the current and future production, reserves and cash flow generating potential of the company.
A combination with a credible acquirer could prove to be beneficial for Longview's shareholders as it will accelerate and enhance the development of Longview's extensive asset base; however, such a combination is only viable in the context of the payment of a price adequately reflective of the true value of the company's underlying assets.
Nawar Alsaadi is supportive of Longview's decision to form a special committee, hire a financial advisor and initiate a shareholder rights plan. It is worrisome, however, that the special committee is inclusive of Mr. Steven Sharpe, current Chairman of the company. Mr. Sharpe, in his capacity as ex-Chairman of Advantage, has presided over the initiation of Advantage's secondary offering of its 45% stake in Longview at a price nearing an all time low. This secondary offering has provided the current undisclosed bidder with an opportunity to acquire a large portion of the Longview Shares at an artificially low valuation.
In a letter dated November 21, 2013 Mr. Alsaadi advised Mr. Sharpe, in his dual capacity as Chairman of Longview and Advantage, not to proceed with such an offering, fearing developments akin to what has transpired in the last 48 hours. Thus, considering Mr. Sharpe's role in the orchestration of an ill-timed and excessively low-priced proposed disposition of Longview Shares, he may lack the sufficient objectivity and independence required to participate in the recently formed special committee in charge of evaluating the current outstanding offer for Longview. Therefore, Mr. Alsaadi strongly suggests that Longview reconsider Mr. Sharpe's participation in this evaluation.
Shareholders sharing a similar stance are invited to voice their opinions and objections directly to Longview.
SOURCE Nawar Alsaadi