CALGARY, Alberta, Dec 15 - Harvest Energy Trust (HTE_u.TO) investors backed Korea National Corp's [KOILC.UL] C$1.8 billion ($1.7 billion) takeover bid for the Canadian company on Tuesday, moving South Korea's biggest overseas energy deal a step closer to completion.
KNOC still requires court and regulatory approvals before wrapping up the acquisition. Those are expected to be in hand by Dec. 22, according to John Zahary, Harvest's chief executive, who will be staying on with KNOC.
"We've got a few more hurdles but hopefully still targeting ... to close next week," Zahary told reporters.
Harvest, which produces 53,400 barrels of oil equivalent a day in Western Canada and operates the 115,000 barrel a day Come By Chance refinery in Newfoundland, did not disclose what percentage of its unitholders voted in favor of the C$10 per unit offer.
Buying Harvest brings South Korea, the world's No. 5 oil importer, closer to its goal of producing the equivalent of 18.1 percent of its oil and gas needs by 2012.
While Korean officials have said they are likely to make further international acquisitions, Zahary said he expects to expand Harvest's assets under the company's new owner.
"This provides KNOC a platform for future growth in this country," Zahary said. "They were certainly interested in doing that."
Zahary said there are no plans to proceed with the C$2 billion expansion of the refinery that Harvest shelved last year when the financial crisis took hold. But he expects KNOC to be able to fund a bigger capital program at the facility than Harvest would otherwise have been able to afford.
"With the financial support provided by KNOC there's an opportunity for us to increase capital investment and that's something we are definitely looking at doing," he said.
Harvest units were down 3 Canadian cents at C$9.90 early on Tuesday afternoon on the Toronto Stock Exchange.
KNOC still requires court and regulatory approvals before wrapping up the acquisition. Those are expected to be in hand by Dec. 22, according to John Zahary, Harvest's chief executive, who will be staying on with KNOC.
"We've got a few more hurdles but hopefully still targeting ... to close next week," Zahary told reporters.
Harvest, which produces 53,400 barrels of oil equivalent a day in Western Canada and operates the 115,000 barrel a day Come By Chance refinery in Newfoundland, did not disclose what percentage of its unitholders voted in favor of the C$10 per unit offer.
Buying Harvest brings South Korea, the world's No. 5 oil importer, closer to its goal of producing the equivalent of 18.1 percent of its oil and gas needs by 2012.
While Korean officials have said they are likely to make further international acquisitions, Zahary said he expects to expand Harvest's assets under the company's new owner.
"This provides KNOC a platform for future growth in this country," Zahary said. "They were certainly interested in doing that."
Zahary said there are no plans to proceed with the C$2 billion expansion of the refinery that Harvest shelved last year when the financial crisis took hold. But he expects KNOC to be able to fund a bigger capital program at the facility than Harvest would otherwise have been able to afford.
"With the financial support provided by KNOC there's an opportunity for us to increase capital investment and that's something we are definitely looking at doing," he said.
Harvest units were down 3 Canadian cents at C$9.90 early on Tuesday afternoon on the Toronto Stock Exchange.
