Diamondback To Buy Energen In $9.2B Deal To Boost Permain Presence
Aug 14 (Reuters) - U.S. oil and gas company Diamondback Energy Inc said on Tuesday it would buy Energen Corp in an all-stock deal valued at $9.2 billion to expand in the Permian Basin.
Energen was under pressure to sell itself by activist investors Corvex Management, Icahn Associates and Elliott Management.
The acquisition will increase Diamondback's current Permian Basin Tier One acreage of 170,000 acres by 57 percent.
Diamondback's implied offer of $84.95 per Energen share represents a premium of about 16 percent to Energen's Tuesday close. The transaction includes $830 million in net debt.
Energen shares rose 6.6 percent to $77.95 in after-market trading, while Diamondback shares fell 7.8 percent to $123.30.
Citigroup Global Markets Inc is the financial adviser to Diamondback, while J.P. Morgan Securities LLC and Tudor, Pickering, Holt & Co are financial advisers to Energen.
(Reporting by Karan Nagarkatti in Bengaluru; Editing by Sriraj Kalluvila)
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