Archaea Energy Being Bought By BP for $26 a Share
October 17 2022 - 7:58AM
Dow Jones News
By Chris Wack
Archaea Energy Inc. said Monday it is being bought by BP PLC for
$26 a share in cash, or a total enterprise value of $4.1 billion,
including $800 million of net debt.
The cash consideration represents a 38% premium to Archaea's
average share price for the 30 days ended Friday.
The companies are targeting closing the acquisition by the end
of this year.
Certain existing Archaea shareholders, who collectively own 27%
of its outstanding shares, have agreed to vote their shares in
favor of the transaction. Closing is not subject to any financing
condition.
Upon completion of the transaction, Archaea will operate as a
subsidiary within BP and become part of the larger global
organization.
Archaea shares were up 50% to $25.31 in premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 17, 2022 07:43 ET (11:43 GMT)
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