Sinopec International Petroleum Exploration and Production Corporation (SIPC) a wholly-owned subsidiary of Sinopec Group of China has acquired Daylight Energy Ltd. of Canada for C$2.2 billion.

In a statement, Daylight Energy said SIPC will acquire all of the issued and outstanding common shares of the corporation at a cash price of C$10.08 per common share.

Daylight Energy is a growing intermediate oil and liquids rich natural gas producing company with a high quality suite of resource play assets in Western Canada.

On the other hand, SIPC is a wholly owned subsidiary of China Petrochemical Corporation (Sinopec Group) and undertakes overseas investments and operations in the upstream oil and gas sector.

The Sinopec Group is China's largest producer and supplier of oil products and major petrochemical products.

Daylight Energy said the transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta).

The consideration offered for the common shares pursuant to the arrangement represents a 43.6% premium over the 60-day weighted average trading price of the common shares on the Toronto Stock Exchange up to and including October 7, 2011.

“We are very pleased to announce this transaction and the considerable value it brings to our securityholders. We believe this transaction with SIPC recognizes the highly attractive asset portfolio and exceptional team that we have assembled at Daylight. The efforts and accomplishments of this team will be built upon through increased investment in the business and acceleration of our development and exploration opportunities" Anthony Lambert, president and CEO of Daylight Energy said.

The arrangement is subject to certain conditions which include court and regulatory approvals, and the approval of majority of Daylight Energy shareholders.

"The board of directors of Daylight, after consulting with its financial and legal advisors, has unanimously approved the arrangement and unanimously determined that the transaction is in the best interests of Daylight," the company said.

Canaccord Genuity Corp. is acting as exclusive financial advisor to Daylight Energy in the transaction. CIBC World Markets Inc. is also acting as financial advisor to the Daylight Energy board.

Blake, Cassels & Graydon LLP is acting as legal counsel to Daylight Energy. Barclays Capital is acting as financial advisor to SIPC, and Vinson & Elkins LLP and Bennett Jones LLP are acting as legal counsel to SIPC.