Maxus Energy Corp. Receives $755.44M Tender Offer from YPF Sociedad Anonima

Strategic Insights -

Dallas-based Maxus Energy Corp., a debt-laden oil and natural-gas exploration and production firm, has received a $755.44 million tender offer from Argentine oil company YPF Sociedad Anonima. The offer, which is for all 134.9 million Maxus shares outstanding, values each share at $5.50, plus an additional 10 cents per share under a shareholder-rights plan. The news has sent Maxus's stock price soaring, with shares trading up 12.5 cents at $3.875 per share, while YPF's stock price has increased by 25 cents to $19 per share. The deal, which is subject to additional regulatory approvals and other hurdles, is expected to close in late March.

Key Takeaways:

  • The tender offer values Maxus Energy Corp. at $755.44 million, with each share priced at $5.50 plus an additional 10 cents per share.
  • The deal is subject to regulatory approvals and other hurdles, which may take several weeks or months to conclude.
  • Maxus Energy Corp. has a staff of about 775 employees and operates oil and natural-gas production in Indonesia, South America, and the Texas Panhandle, western Oklahoma, and Indonesia.
  • The company has nearly $1 billion in debt and has lost $25.6 million in the fourth quarter of 1994 on $157.5 million of revenues.
  • Maxus Energy Corp. reported a $49 million non-cash charge in the fourth quarter to increase reserves for future environmental liabilities under federal clean-up laws.
  • The company also reported a $24 million gain in the fourth quarter due to a favorable outcome in a federal income-tax lawsuit.
  • Maxus Energy Corp. had been pursuing "strategic alternatives," including possible equity investments, months prior to the tender offer.

Statistics:

  • The tender offer values Maxus Energy Corp. at $755.44 million.
  • Each share of Maxus Energy Corp. is valued at $5.50 plus an additional 10 cents per share.
  • The company has 134.9 million shares outstanding.
  • Maxus Energy Corp. has nearly $1 billion in debt.
  • The company reported a loss of $25.6 million in the fourth quarter of 1994 on $157.5 million of revenues.
  • The company also reported a $49 million non-cash charge in the fourth quarter to increase reserves for future environmental liabilities under federal clean-up laws.
  • The company reported a $24 million gain in the fourth quarter due to a favorable outcome in a federal income-tax lawsuit.

Sources:

  • UPI Business Writer, Jerry Kronenberg, "Debt-laden Maxus Energy Corp. said Tuesday that it has received and endorsed a $755.44 million tender offer from Argentine oil company YPF Sociedad Anonima."