Exterran Corporation (NYSE: EXTN) shares are up more than 50% after the company and Enerflex Ltd announced a business merger to establish a leading integrated international energy infrastructure provider.
Exterran and Enerflex merge to form an international energy infrastructure provider
The combined company will run as Enerflex, with headquarters in Calgary, Alberta, Canada. Enerflex’s capacity to service clients in critical water, energy transition, and natural gas, markets will be strengthened due to the Transaction’s increased scale and economies. At the same time, stockholder value will be enhanced via sustained increases in cash flow generation and profitability. Enerflex CEO and President Marc Rossiter commented:
This is an exciting day in the history of our companies. The Transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform.
The businesses will merge in an all-stock transaction. Enerflex will buy all of Exterran’s outstanding common stock for 1.021 Enerflex shares for each Exterran common share, resulting in roughly 124 million Enerflex outstanding common shares at closing, which implies a combined market capitalization of about US$1.5 billion. Rossiter added:
Enerflex and Exterran each have a long history of global expertise in the delivery of modular energy solutions. Together, we are more efficient and better positioned in global capital markets. The Transaction will improve our ability to partner with an expanded set of customers to solve their growing energy infrastructure challenges with integrity, creativity, commitment, and success.
Exterrrn values the Transaction at $735 million
Exterran’s deal value is about US$735 million, representing an 18% premium over the company’s market value as of January 21, 2022. Enerflex and Exterran shareholders will possess roughly 72.5 percent and 27.5 percent of the combined company, respectively.
The combined company will continue to trading on the Toronto Stock Market (“TSX”), with plans to seek a listing on either the New York Stock Exchange or the NASDAQ exchange. Andrew Way, Exterran CEO, said:
“We are excited about the ability to create shareholder value through this Transaction and improving our product and service offering. The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services.”
La notizia Exterran Corporation shares jump 50%, here is why era stato segnalata su Invezz.
