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Gas industry

YPF Acquires Maxus Energy Corporation in $5.50 Per Share Deal

Strategic Insights

— 2 min read

YPF Sociedad Ansinima, a major Argentine oil company, has announced an agreement to acquire Maxus Energy Corporation, a leading oil and gas company, in a deal worth $5.50 per share. The acquisition will see YPF acquire all of Maxus' common stock through a tender offer, followed by a merger, where the remaining Maxus common stock will be exchanged for the same price. Maxus' preferred stock will remain outstanding.

The deal is expected to establish YPF as an international oil and gas company, a key part of the company's strategy since its privatization in 1993. YPF's financial strength will be crucial in realizing the potential of Maxus' assets, which are located in Indonesia, Venezuela, Ecuador, Bolivia, and the United States. Maxus' operational management and personnel will also provide essential interaction with YPF's present operations and future expansion.

Key Takeaways:

  • YPF will acquire all of Maxus' common stock at $5.50 per share through a tender offer and merger.
  • Maxus' preferred stock will remain outstanding after the acquisition.
  • The acquisition is expected to establish YPF as an international oil and gas company, a key part of the company's strategy since its privatization in 1993.
  • YPF's financial strength will be crucial in realizing the potential of Maxus' assets, which are located in Indonesia, Venezuela, Ecuador, Bolivia, and the United States.
  • Maxus' operational management and personnel will provide essential interaction with YPF's present operations and future expansion.
  • Peter Gaffney, a founding partner of Gaffney, Cline and Associates, will become the interim CEO of Maxus after the merger.
  • Charles L. Blackburn, the current CEO of Maxus, will become an international consultant to YPF and remain on the company's board.
  • Maxus will suspend all efforts to sell Midgard Energy Company, its mid-continent natural gas subsidiary.

Statistics:

  • Acquisition price: $5.50 per share.
  • Total value of the acquisition: $[insert calculation, but since this is a tender offer, the company may not release the exact number of shares being acquired, and therefore the total value may vary based on the number of shares tendered].
  • YPF's financing commitment: up to $800 million for the purchase.
  • Maxus' operating locations: Indonesia, Venezuela, Ecuador, Bolivia, and the United States.
  • Number of Maxus' employees: unknown.
  • Timeframe for the tender offer: scheduled to commence within the next few days.

Sources:

  • YPF Sociedad Ansinima (NYSE: YPF)
  • Maxus Energy Corporation (NYSE: MXS)
  • The Chase Manhattan Bank, N.A. (financing commitment)
  • Gaffney, Cline and Associates (Peter Gaffney's affiliation)
  • Society of Petroleum Engineers (Peter Gaffney's affiliation)
  • YPF press release, February 28, 1995.

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