Sinopec International Petroleum Exploration and Production Corp, an international unit of China Petrochemical Corp, will purchase Canadian oil and gas explorer Daylight Energy for C$2.2bn ($2.1bn).

Daylight Energy’s board of directors backed the sale, which must be approved by its shareholders.

The deal includes a break-up fee of C$100m.

Daylight suspended future dividends due to the proposed sale of the company, reports The Associated Press.