21st May 2021 10:36
(Alliance News) -Â Diversified Energy Co PLC on Friday said it has raised USD225 million via a share placing and retail offer to fund an acquisition announced on Thursday.
The fundraise was priced at 112 pence per share, a 8.3% discount to Thursday's closing price of 122.2p. Shares were trading down at the offer price of 112.00p in London on Friday.
The fundraising comprised 135.4 million placing shares and 6.1 million retail offer shares.
The Birmingham, Alabama-based energy producer and distributor on Thursday said it has agreed to buy certain upstream assets, and related infrastructure, in its newly identified "central regional focus area" from Blackbeard Operating LLC for initial gross aggregate consideration of USD180 million.
"This announcement follows the announcement on April 30 in relation to the conditional acquisition of certain Cotton Valley upstream assets and related facilities also located in the Central RFA from Indigo Minerals LLC," company said.
The Cotton Valley deal was completed on Wednesday for USD135 million.
Should the Blackbeard acquisition not complete, Diversified Energy said on Friday, it will determine the most appropriate use of the net proceeds from the fundraise, including potentially paying down further amounts drawn on its revolving credit facility and investing in other acquisition opportunities.
The company consulted with, and received "strong support" from, many of its largest shareholders prior to the fundraise.
"With strong shareholder support for the expansion of our proven strategy, I am pleased to announce a successful placing to part fund our announced Blackbeard and Indigo acquisitions. This placing, through the assets we are acquiring, delivers share-level earnings accretion and strengthens our balance sheet to position us for additional success in our Central Regional Focus Area and within Appalachia," said Chief Executive Rusty Hutson.
By Lucy Heming;Â [email protected]
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