SandRidge and Arena Announce Merger
Apr 4, 2010 Company News, Mergers & Acquisition
Independent oil and gas producers, SandRidge Energy (SD) and Arena Resources(ARD), announced on Sunday April 4, that they had entered into a definitive merger agreement under which Arena Resources shareholders will receive a total of $40 per share in cash and stock for each share of their Arena common stock. with Arena Resources shares closing at $34.26 on Friday, this represents a 16.75% premium. SandRidge shares closed at $7.85 on Friday.
The $40 per share offer is broken down as follows; 4.7771 shares of SandRidge common stock and $2.50 in cash.
With oil prices on a steady rise, while gas prices have been heading, SandRidge began a strategic shift in 2009 towards more oil production and expoloration and according to SandRidge, “the transaction uniquely positions SandRidge as one of the largest producers of West Texas conventional oil and gas. The oil opportunities will come primarily from drilling and development of shallow, low risk reservoirs located on the Central Basin Platform (“CBP”), a part of the Permian Basin in West Texas.”
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Tags: arena resources, merger, sandridge energy
