05/06/2013 09:58 EDT | Updated 07/06/2013 05:12 EDT

Insignia Energy management participate in privatization proposal from Brookfield

CALGARY - Insignia Energy Ltd. says members of its management are participating in a proposal from majority shareholder Brookfield Capital Partners Ltd. to privatize the Calgary-based oil and gas junior.

Brookfield has informally offered $1.35 cash per share representing a 95 per cent premium over the average trading price in 20 prior trading days on the Toronto Stock Exchange.

Brookfield and its affiliates own 67 per cent of Insignia shares, while Insignia management controls 4.1 per cent.

Insignia (TSX:ISN) management will remain as shareholders and employees.

The transaction would require approval of shareholders and the Alberta Court of Queen's Bench.

A committee of the independent Insignia board members is considering the proposal and is obtaining an independent valuation of the company.

The proposal, which isn't yet formal, is subject to conditions including the independent valuation, negotiation of a formal binding arrangement agreement and the exercise or cancellation of all outstanding stock options and performance warrants issued by Insignia.