Newhall Land & Farming, renewing its bid to acquire Newhall Resources, agreed in principle to buy the oil and gas concern for $30.7 million in cash.
Newhall Land is a real estate and agricultural company that spun off Newhall Resources in 1983. Both companies are based in Valencia, a community Newhall Land is developing. They also are limited partnerships whose units are publicly traded on the New York Stock Exchange.
Newhall Land initially offered to buy back Newhall Resources in October for $7.50 per unit, or $33 million. But Newhall Land let the offer expire Dec. 31 after the size of Newhall Resources' oil and gas reserves was adjusted downward from earlier estimates.
The new, lower offer calls for Newhall Land to pay $7 for each of Newhall Resources 4.4 million units outstanding.
Newhall Land proposed the acquisition to obtain mineral rights that Newhall Resources holds for land in the Valencia area, which would enable Newhall Land to speed up development of the region. Newhall Land also has said it does not plan to re-enter the energy business and would sell Newhall Resources' existing producing oil and gas reserves to a third party.