Sinopec agrees to buy Daylight Energy for $2.1B

By The Associated Press | October 9, 2011 | 2:30 PM EDT

China's Sinopec International Petroleum Exploration and Production Corp. has agreed to buy Canadian oil and gas company Daylight Energy Ltd. for about $2.2 billion Canadian ($2.1 billion U.S.).

Daylight Energy said Sunday that purchase price amounts to a 43.6 percent premium over the average price of the company's shares over the 60 days that ended Friday.

That works out to about $10.08 Canadian a share. Daylight's shares ended trading Friday on the Toronto Stock Exchange at $4.59.

The transaction must be approved by Daylight's shareholders.

The deal includes a breakup fee of $100 million.

Sinopec International is a unit of China Petrochemical Corp.

Daylight Energy is based in Calgary, Alberta.