The Boards of Texon Petroleum Limited (TXN) and Sundance Energy Australia Limited (SEA) are pleased to announce that they have agreed to the proposed Merger of Texon with Sundance via a scrip transaction that provides a unique consolidation opportunity with significant benefits for shareholders of both companies.
Sundance and Texon have agreed to a merger via a scheme of arrangement subject to votes of Texon’s shareholders, the Demerger taking place, and Court and other necessary approvals. If approved, Texon shareholders will receive:
- One share in Sundance for every two shares held in Texon valued at $0.41 per share based on Sundance’s closing share price on 12 November 2012 of $0.82; and
- One share in Talon for every one share held in Texon that will include significant potential value through Texon’s non-EFS exploration portfolio.
Texon’s CEO Cliff Foss said, “The transaction between Texon and Sundance makes sense on a number of levels, and provides significant benefits for shareholders of both companies. A transaction with Sundance provides asset diversity and the required capital to fully exploit Texon’s attractive low risk development EFS assets which is expected to enhance shareholder value.”
Sundance’s Managing Director Eric McCrady said “The proposed merger between Sundance and Texon is a unique value-adding consolidation opportunity with significant benefits for shareholders of both companies. The combined Company will have production, cash flow, and reserve growth potential with highly attractive risk adjusted return potential. Importantly, the combined Company will have the funding capacity to unlock significant value for shareholders.”