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.
