UPDATE 2-Verenex agrees to Libya offer as China sale blocked
* Verenex accepts Libya's C$7.09 a share offer
* Compensation for working capital could add C$0.15 share
* Approval of 75 percent of Verenex shares needed
* Shares rise 3 percent
(Adds details, analyst comment)
By Scott Haggett and Alex Lawler
CALGARY, Alberta/LONDON, Nov 5 (Reuters) - Verenex Energy Inc VNX.TO confirmed on Thursday it agreed to be bought by a Libyan sovereign wealth fund for at least C$316.8 million ($299 million), ending a months-long battle in which the Libyans blocked a better offer from China.
The Verenex dispute highlighted the determination across resource-holding countries to maximise their own returns from oil and gas, as well as the risks for foreign investors in Libya, holder of Africa's largest oil reserves.
Analysts thought both sides would welcome an end to the saga, which started in February when China National Petroleum Corp [CNPET.UL] bid C$499 million including debt for Verenex. Libya blocked the bid, offering later to buy the firm for the lower price. Continued...
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