Hung Deal Leaves BMO, RBC-Led Group With Crescent Point Shares
- Company’s C$500 million equity raise undersubscribed
- ‘Bad timing as opposed to a bad deal,’ Ninepoint says
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Bank of Montreal, Royal Bank of Canada and others have been left holding millions of Crescent Point Energy Corp. shares after leading a C$500 million ($362 million) equity raise that failed to win widespread institutional investor support, according to people familiar with the matter.
Calgary-based oil and gas producer Crescent Point issued 48.5 million shares this week at a price of C$10.30 each to finance its C$2.6-billion acquisition of Hammerhead Resources. The banking syndicate led by BMO and RBC still holds about 25% of the shares offered, the people said, asking not to be identified as the information isn’t public.