Korea KNOC to Buy Canada's Harvest Energy

CALGARY, Alberta (TheStreet) -- Harvest Energy Trust (HTE) will be sold to Korea National Oil for 10 Canadian dollars a unit, or a total of C$4.1 billion ($3.92 billion) in cash and debt.

Harvest said late Wednesday Korea National Oil, or KNOC, will pay C$1.8 billion in cash and assume C$2.3 billion of debt.

The purchase is the largest acquisition of a foreign oil firm by a South Korea company, the Wall Street Journal says.

Shares of Harvest Energy closed Wednesday at $C7.30 in Toronto and $7.01 in trading on the New York Stock Exchange.

Harvest Energy said the purchase price is a 47% premium over the 30-day weighted average trading price in Toronto. The deal is expected to close in December.

"Korea National Oil Corporation is excited about this acquisition and believes Harvest is a perfect fit for KNOC's North American growth strategy," said KNOC President Young-won Kang, in a statement. "KNOC has ambitious plans for future growth and is committed to a long- term investment strategy in Canada.

The board of Harvest has approved the agreement.

-- Reported by Joseph Woelfel in New York .

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