Merger
Posted: Tue Apr 30, 2013 9:43 am
A week after the death of its founder, Contango Oil & Gas Co. (NYSE MKT: MCF) said it will merge with Crimson Exploration Inc. (NasdaqGM: CXPO) in a $400 million all-stock transaction.
Crimson stockholders will receive 0.08288 shares of Contango common stock for each Crimson share. Based on Contango’s April 29 closing stock price, the deal represents a premium of 8 percent to the most recent closing price of Crimson common stock.
The deal, worth $390 million, includes $244 million of Crimson's long-term debt. The combined company will have estimated proven reserves worth about $935 million, according to a statement.
The two Houston-based companies said the combined corporate headquarters of the new company will be in Houston.
have already signed a merger agreement. Crimson will become a wholly owned subsidiary of Contango.
Crimson stockholders will receive 0.08288 shares of Contango common stock for each Crimson share. Based on Contango’s April 29 closing stock price, the deal represents a premium of 8 percent to the most recent closing price of Crimson common stock.
The deal, worth $390 million, includes $244 million of Crimson's long-term debt. The combined company will have estimated proven reserves worth about $935 million, according to a statement.
The two Houston-based companies said the combined corporate headquarters of the new company will be in Houston.
have already signed a merger agreement. Crimson will become a wholly owned subsidiary of Contango.