Agreement Reached For Sale of DevX Energy
DevX Energy, Inc. has entered into a definitive agreement which provides for a wholly owned subsidiary of Comstock Resources, Inc. to acquire DevX in a transaction in which DevX shareholders would receive $7.32 in cash per DevX share.
The acquisition will be effected by a first step cash tender offer for all of DevX's outstanding common stock. The tender offer is expected to commence on November 15, 2001 and to remain open for at least 20 business days. The tender offer will be followed by a merger in which shareholders whose shares are not acquired in the tender offer will receive $7.32 per share in cash. The offer is conditioned on, among other things, greater than 50% of the outstanding DevX shares being tendered.
Joseph T. Williams, Chairman, President and Chief Executive Officer of DevX said, "The Comstock offer represents a significant premium over DevX's stock price during the past several months. The DevX board considered the Comstock offer from several aspects, including a fairness opinion rendered by investment banker Friedman, Billings & Ramsey, and determined that the terms of the agreement and related transactions are advisable, fair to and in the best interests of DevX shareholders. Accordingly, our board recommends that shareholders accept Comstock's offer by tendering their shares pursuant to the terms of the tender offer."