Supreme Court of Yukon Approves Exxon-InterOil Transaction

The Supreme Court of Yukon has granted a final order approving ExxonMobil's takeover of InterOil. The deal paves the way for the US major to run a bigger gas production and LNG export operation in Papua New Guinea.

The arrangement was approved by more than 91% of the shares voted at a special meeting on February 14, 2017 and has now received all necessary approvals, InterOil said February 20. InterOil and ExxonMobil expect the transaction to be completed this week.

InterOil founder and former CEO Phil Mulacek had lodged an appeal against the deal last year. November 4, the Court of Appeal of Yukon allowed the appeal lodged by Mulacek, and overturned the Supreme Court of Yukon's approval of the pending transaction with Exxon.

Mulacek, who is still a shareholder, has been arguing that InterOil shareholders have not been compensated adequately. Early October, the Supreme Court of Yukon had approved the transaction, calling it fair and reasonable. InterOil is incorporated in Yukon, Canada.

In May, InterOil entered into a binding agreement to be acquired by Oil Search for $2.2bn, with Oil Search to sell a little over 60% to Total for $1.2bn. But on July 21, ExxonMobil trumped Oil Search’s bid to acquire InterOil with a $2.5bn-$3.6bn bid, the sum payable depending on the size of the reserves. There was no counter-bid.

Shardul Sharma