Spanish oil and gas company CEPSA and international oil and gas E&P company Coastal Energy have entered into a definitive merger agreement providing for the acquisition by CEPSA of all of the issued and outstanding shares of Coastal at a price of C$19 (US$18.2) per common share in cash. The purchase price represents a premium of 28% to the closing price of the Company's common shares on the TSX. The purchaser is a newly-incorporated CEPSA controlled entity in which Strategic Resources Global Limited (SRG) is an investor. The proposed transaction has an aggregate value of approximately C$2.3bn (US$2.2bn) including the assumption of C$51m (US$49m) of net debt. The transaction, which will be completed by way of statutory merger, is expected to close in the first quarter of 2014. Coastal owns and operates 100% of Blocks G5/43 and G5/50 in the Gulf of Thailand as well as varying interests onshore northeast Thailand including a 13.7% interest in the Phu Horm gas field. This acquisition will strengthen CEPSA's activities in South East Asia.