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  • Battalion Oil (BATL) Shares Skyrocket Amid News Of Merger Deal Revision

    Battalion Oil (BATL) Shares Skyrocket Amid News Of Merger Deal Revision

    As a result of the news that Battalion Oil Corporation (NYSE: BATL) and Fury Resources, Inc. have amended their merger agreement, the company’s stock is rising significantly. The most recent check showed that BATL shares were up 119.58% to $6.46. Investor interest in the merger modification has been high, mainly because of the terms of the deal and the prospects of both firms going forward.

    Battalion Oil shared details of the Amended Merger Agreement

    Under the amended Agreement and Plan of Merger, Fury Resources will acquire all outstanding shares of Battalion Oil (BATL) common stock at $7.00 per share in cash, without interest.

    This acquisition includes the exchange of all Battalion Oil’s preferred stock, currently held by Luminus Management, LLC, Gen IV Investment Opportunities, LLC, and Oaktree Capital Management, L.P., for new preferred shares in Fury Resources. The preferred shares will be valued based on the redemption value of Battalion Oil’s preferred stock.

    Transaction Timeline and Capital Commitments

    The merger is expected to close in the fourth quarter of 2024, subject to shareholder approval and other closing conditions specified in the Merger Agreement. Fury Resources has secured robust financial commitments to complete the transaction, including $200 million in debt from Fortress Credit Corp. and AI Partners Asset Management Co., Ltd., and $188 million in preferred stock commitments. Additionally, Fury Resources has received $160 million in equity commitments to acquire new shares of common stock.

    Strategic Benefits for BATL and Institutional Support

    Following the merger, Fury Resources is anticipated to have approximately $100 million in cash, post-acquisition. The acquisition strengthens Fury’s presence in a prolific oil basin, offering opportunities for consolidation and scaling.

    Luminus and Oaktree, who collectively own 61.61% of Battalion Oil’s common stock, have also committed to voting in favor of the merger, further solidifying support for the transaction. The combined efforts of Battalion Oil and Fury Resources aim to deliver value to shareholders while positioning Fury for future growth and success in the energy sector.

  • What Is Driving Battalion (BATL) Stock Higher Today?

    What Is Driving Battalion (BATL) Stock Higher Today?

    Stock prices for Battalion Oil Corporation (NYSE: BATL) are skyrocketing on US stock charts today. At the time of last check during current session, BATL stock was up 81.80% to $9.59. BATL stock price is rising after takeover news became public.

    Battalion (BATL) today announced that Fury Resources, Inc. and Battalion have entered into an agreement and plan of merger (the Merger Agreement). The Merger Agreement lays out that Fury Resources will acquire all shares of BATL Common Stock. The stock acquisition for Merger Consideration amounts to $9.80 per share in cash. The transaction is valued at approximately $450 million for Battalion.

    Those holding BATL Preferred Stock include Oaktree Capital Management, L.P., Luminus Management LLC, or their respective affiliates (collectively, the “Rollover Stockholders”). They will contribute BATL Preferred Stock to Fury Resources in exchange for new preferred shares or sell those Preferred Stocks to Fury Resources at a valuation determined by their conversion or redemption values.

    As part of the closing conditions, which include the approval of Battalion’s stockholders, the transaction is expected to close in the first quarter of 2024. In accordance with the Merger Agreement, AI Partners Asset Management Co., Ltd; and Fortress Credit Corp. have pledged to finance a portion of the Merger Consideration.

    As a result of the transaction, the Rollover Stockholders, who own 61.61 % of BATL Common Stock, have entered into a Voting Agreement with Fury Resources under which they will, among other things, be able to cast 6,254,652 votes in favor of the merger. In total, it represents 38% of the votes on the Company’s capital stock, in favor of adopting the Merger Agreement.