4 Merger and Acquisitions Stock Stories Creating a Wednesday Buzz
Devon Energy Corp. (NYSE:DVN): Current price $62.60
On Wednesday, Deven Energy said that it will purchase GeoSouthern Energy’s assets in the Eagle Ford oil play at a cash price of $6 billion. The acquired assets include current output of 53,000 barrels of oil equivalent per day and 82,000 net acres with a minimum of 1,200 undrilled locations. The risked recoverable resource is calculated at 400 million barrels of oil equivalent, the majority of which is proved reserves. The transaction will be funded with a combination of cash on hand and borrowings. Devon expects to pay back the borrowings with free cash flow and proceeds from the monetization of non-core assets. The transaction is subject to the usual purchase price adjustments, terms and conditions, and should close in the first quarter.
Intuit Inc. (NASDAQ:INTU): Current price $73.17
Intuit will acquire the privately-held Prestwick Services, which is a subsidiary of Prestwick Holdings, a player in payroll-based billing and payment solutions for the workers compensation industry. The buyer will open the platform that enables workers compensation insurance premiums to be calculated in real-time, based on actual payroll, and small business owners will not need to switch insurance carriers or agents. The integration of Prestwick Services means that over one million Intuit payroll customers will have access to flexible payment options from 15 top insurance carriers, without a change to their current agent-client relationships.
ENI S.p.A. (NYSE:E): Current price $48.45
On Wednesday in Moscow, Eni secured an agreement to divest its 60-percent interest in Arctic Russia to Yamal Development, the joint venture equally owned by Novatek and GazpromNeft. Arctic Russia owns 49 percent of Severenergia, which holds four licenses for the exploration and production of hydrocarbons in the Yamal Nenets region. The transaction is subject to receipt of mandated approvals. The sale price came to $2.94 billion, which will be paid in cash at closing. Subsequent to the close, Eni will no longer hold a stake in Severenergia.
Apollo Global Management LLC (NYSE:APO): Current price $29.23
The private equity firm Roark Capital Group has reached a deal to purchase the Apollo Global Management-based restaurant group CKE Inc., which is the parent of the Hardees and Carl’s Jr fast-food chains. Roark beat out its rival bidder TriArtisan Capital Partners in the latter stage of the process, according to knowledgeable sources, who added that the transaction values CKE at between $1.65 billion and $1.75 billion.
Investing Insights: Will Tesla Motors Break Higher?