11th Oct 2018 10:06
LONDON (Alliance News) - Diversified Gas & Oil PLC said Thursday that it acquired US natural gas producer Core Appalachia Holding Co LLC from TCFII Core LLC for USD183 million.
The payment for the business consists of USD130 million in cash and the issue of 35.0 million shares at 115 pence per share.
Diversified Oil shares were trading 3.7% higher at 113.50p on Thursday.
The company said that the acquisition is "highly complementary" and will allow the company to "unlock significant incremental value through consolidation to a single operator".
Chief Executive Officer Rusty Hutson said: "Our strategic acquisition of Core will allow us to unlock significant value from our enlarged base of assets in Kentucky and West Virginia that would otherwise not be achievable on a stand-alone basis."
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