Shareholders Approve Callon-Carrizo Merger
After a delayed vote, both Callon Petroleum Company and Carrizo Oil & Gas, Inc. shareholders voted to approve the companies’ all-stock merger Friday morning.
The companies announced that the merger is scheduled to close by close of business Friday.
The deal, in which U.S. independent Callon will acquire Houston-based Carrizo, was first announced back in July.
Since then, the deal received repeated opposition from one of Callon’s top shareholders, Paulson & Co. Inc. In November, Callon amended the terms of the deal and lowered its acquisition offer. Under the amended terms, Carrizo shareholders would receive 1.75 shares of Callon common stock for each share owned of Carrizo common stock. Callon shareholders would then own 58 percent of the combined company and Carrizo shareholders 42 percent.
A week later, Paulson dropped its opposition.
“We appreciate the strong support we received for our combination,” said Callon CEO Joe Gatto said in a company statement. “Together with Carrizo, we are creating a leading oil and gas company that is positioned to accelerate the achievement of our stated goals regarding increasing returns on capital and sustainable free cash flow generation. As a larger enterprise, we will employ a more efficient scaled development model that will drive a lower cost of supply and underpin resilient performance over time. We look forward to delivering to our shareholders and other stakeholders the significant benefits we believe this combination provides.”
To contact the author, email Valerie.Jones@Rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.