Oil company shareholders like Sherritt Gordon offer

Toronto-based Sherritt Gordon (TSE) has been given the green light by shareholders of Canada Northwest Energy and the Court of Queen’s Bench of Alberta to acquire all of Canada Northwest’s issued shares.

If Sherritt Gordon can satisfy other conditions set out in a proposal announced in June, the agreement will become effective Oct. 15. In a bid to secure long-term fuel supplies for its Alberta nickel refinery, Sherritt is offering Canada Northwest shareholders the option to receive either common shares or zero coupon subordinated notes of Sherritt upon completion of the arrangement.

Security holders have until 5 p.m. (Calgary time) on Oct. 8 to choose between the common shares and the subordinated notes.

Those who don’t make their decision on time will receive Sherritt shares. Back in June, TransAlta Resources Investment Corp. agreed to tender its 40% stake in Canada Northwest to Sherritt under a proposed transaction valued at $82 million. Canada Northwest has producing oil and gas fields in Alberta and holdings in Spain and Italy.