** Shares of Canada-based oil and gas producer rise 11.9% to C$11.99; company top percentage gainer on the Toronto Stock Exchange's S&P/TSX composite index
** TOU forms a private royalty and infrastructure company, Topaz Energy Corp ** It will sell its royalty and infrastructure assets for C$775 mln to Topaz ** Topaz will be capitalized with a C$150-C$200 mln 3rd-party private equity placement and with TOU owning 75%-81% of the company ** We view this as a positive and creative transaction that looks to unlock value in some of TOU's assets while providing an alternative form of financing in the near-term – Industrial Alliance Securities ** Brokerage says the deal has the potential for a longer term monetization of the value trapped in TOU's substantial and undervalued asset base ** Stock down 29.4% YTD (Reporting by Shanti S Nair in Bengaluru)