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Parsley Energy & Jagged Peak Energy Sign Definitive Merger Agreement

Gasoil News - Published on Wed, 16 Oct 2019

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Parsley Energy and Jagged Peak Energy announced they have entered into a definitive merger agreement, under which Parsley will acquire Jagged Peak in an all-stock transaction valued at approximately USD 2.27 billion, including Jagged Peak's net debt of approximately USD 625 million as of June 30, 2019. Under the terms of the agreement, Jagged Peak shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged Peak common stock they own. This represents USD 7.59 per Jagged Peak share based on Parsley's closing price on October 11, 2019, and a premium of 1.5% compared to Jagged Peak's 30-day volume weighted average price and 11.2% compared to Jagged Peak's closing price on October 11, 2019.

The transaction, which is expected to close in the first quarter of 2020, has been unanimously approved by each company's board of directors. Following the close of the transaction, Parsley shareholders will own approximately 77% of the combined company, and Jagged Peak shareholders will own approximately 23% of the combined company, in each case on a fully diluted basis. The all-stock transaction is intended to be tax-free to Jagged Peak shareholders.

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Posted By : Rabi Wangkhem on Wed, 16 Oct 2019
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