Canadian-based midstream energy company Gibson Energy has rejected an unsolicited takeover offer from a foreign entity.

Replying to a media report, the company confirmed receiving an acquisition proposal from an overseas firm.

Gibsons confirmed that it has received a non-binding, highly conditional proposal for discussion, from an unknown, unidentifiable foreign entity whose principals insisted on anonymity.

Gibson chairman James Estey said: “Despite these factors, Gibson's Board of Directors seriously considered the proposal and retained independent legal and financial advisors to assist it in careful deliberations of the merits of the proposal and the opportunity potentially represented by it, having regard to the best interests of the Company and its stakeholders.”

Earlier, The Financial Post reported that the Gibson’s directors rejected a $2.8bn takeover offer from a Singapore-based private equity firm.

Gibson’s chairman Estey sent a letter on 2 August to Asia Pacific Private Equity rejecting the offer, the publication said.

 On 4 July, Asia Pacific offered $19.94 per share to take control of Gibsons.

Estey said in a statement: “Based on that advice and other input, the Board unanimously concluded that the proposal represented inadequate value to shareholders and was not in the Company's best interests to pursue.

“The Board reached this conclusion as to the proposal's merits, without regard to the extreme conditionality of the proposal and inability to identify the proponent. This determination was privately conveyed to the interested party."

Further, the company said that it not seeking expressions of interest for its business other than the previously announced plans to divest its industrial propane business.

In July, Gibson engaged RBC Capital Markets as a financial advisor to assist it with a potential sale of its industrial propane business.

Image:Canada’s Gibson Energy rejects takeover offer from unnamed overseas entity. Photo: courtesy of puttsk/