The West wants out......Abu Dhabi strikes again

You may recall that Abu Dhabi was the entity that picked up $5 billion Prime West Energy Trust for a song, after Flaherty's income trust tax destroyed its value for Canadian investors with his income trust tax....that Abu Dhabi successfully avoids paying.

While Industry Minister, Jim Prentice wrote Abu Dhabi a letter inviting them to do more of the same.......which they now have:


Nova Chemicals accepts US$2.3B Abu Dhabi bid

Jamie Sturgeon, FInancial Post Published: Monday, February 23, 2009

Facing mounting debt, Nova Chemicals Corp. said Monday it has agreed to be acquired by Abu Dhabi-based International Petroleum Investment Company for US$499-million, or US$6 per share.

The raw plastics maker, which needed to raise $100-million before the end of the month, had been attempting to strike a deal with its lenders in recent weeks. Nova is headquartered in Pittsburgh but has extensive operations in Alberta and Ontario.

"We remain confident in our ability to work with both existing and new lenders, and hope to be able to provide an update on our financing situation soon," Jeff Lipton, Nova chief executive, said at an industry conference in Webcast remarks last week.

Dual-listed Nova shares surged 310% to $6.81 on the Toronto Stock Exchange Monday morning, while the company's stock price in New York soared to US$5.45 at the market open.

The deal represents a 350% premium on Friday's closing price. Nova's share price had fallen a precipitous 94% in Toronto and New York since the end of August.

"The arrangement is intended to enable Nova Chemicals to meet all of its obligations to all of its stakeholders and will strengthen Nova Chemicals' balance sheet so that its strong assets will continue to operate and expand," the company said in a news release.

State-owned International Petroleum, which has operations across the Middle East, Asia and Europe, said it will immediately provide Nova with US$250-million credit backstop facility to provide "sufficient liquidity" to Nova, which will continue to operate as an independent company.