In this file photo, the GTL Crude Oil Barge Loading Facility is pictured.
Gibson Energy Inc. received a letter proposing a takeover of the company – this we know. The mystery is, from whom exactly?
The company, known for its oil-storage and transport businesses, spurned what appeared to be a $2.8-billion bid from an entity called Asia Pacific Private Equity.
One problem, Gibson chairman James Estey said, was that the "alleged" offer of $19.94 a share looked highly conditional and did not reflect the value of the company and its prospects. But perhaps a more thorny issue was that the company could not confirm the identity of the bidder.
In a statement on Thursday in response to a Financial Post report regarding the offer and its rejection, Gibson described it as "non-binding, highly conditional proposal for discussion, from an unknown, unidentifiable foreign entity whose principals insisted on anonymity."
Still, Gibson shares jumped more than 8 per cent on the Toronto Stock Exchange during Thursday's session, and settled up 6.8 per cent at $17.11.
The company declined to provide copies of the communications.
Other than the letter from Asia Pacific Private Equity, based in Singapore, and its managing director, Andrew Stewart, the only contact was a phone call to Gibson to say the offer was on its way, according to a Gibson official.
Indeed, a search through online databases did not reveal such a company and managing director combination, though it is not known if Asia Pacific might be a new entity or one that has managed to stay out of the spotlight in a digital age in which it is increasingly difficult to do so.
The Financial Post report quoted an e-mail from Mr. Stewart saying the group was deciding on its next move.
Gibson, known in the energy business for its crude-oil storage tanks in the pipeline hubs of Edmonton and Hardisty, Alta., said it is not seeking buyers, except for those that might be interested in its industrial-propane business. It put that operation on the auction block last month.
A question now is whether Gibson may be in play as a result of the latest development.
"My thought is, it's too early to tell," said Steven Paget, an analyst at FirstEnergy Capital Corp.
By selling out, Gibson would remove the prospect of future dividends for shareholders and leave scant opportunity to invest in another company so focused on that part of the industry, Mr. Paget said. He said the offer from Asia Pacific leaves many questions.
"The letter doesn't prove anything. It wouldn't prove that the company would have the wherewithal to close a deal," he said. "I suspect they would have, but there would be a lot more due diligence required further on."
Despite its questions, Gibson's board hired legal and financial advisers to pore over the overture.
"Based on that advice and other input, the board unanimously concluded that the proposal represented inadequate value to shareholders and was not in the company's best interests to pursue," Mr. Estey said in his statement.
Jeffrey Jones