Another step taken in Chesapeake’s acquisition of Vine Energy

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As part of Chesapeake Energy’s recent acquisition of Vine Energy Inc., a deal valued at $2.2 billion, investors in Vine Energy are being asked to approve a merger with a Chesapeake subsidiary.
Notification went out this week to Vine Energy shareholders who were told the board of directors of Vine has unanimously approved the merger agreement and recommends that Vine stockholders vote in favor of adopting the merger agreement. A proxy statement was filed by Chesapeake Energy with the Securities Exchange Commission.
Chesapeake announced in August of its agreement to acquire Vine, an energy company that developed natural gas properties in the Haynesville and Mid-Bossier shale plays of Northwest Louisiana.
At the time, the announcement stated that the acquisition is a zero premium transaction valued at approximately $2.2 billion, based on a 30-day average exchange ratio equating to $15.00 per share.
Vine shareholders are to receive fixed consideration of 0.2486 shares of Chesapeake common stock plus $1.20 cash per share of Vine common stock, for total consideration of $15 per share, comprising of 92% stock and 8% cash.
Chesapeake’s Board Chairman and interim CEO Mike Wichterich said at the time that the consolidation in the Haynesville would help the company become a “dominant supplier” of gas to premium markets in the Gulf Coast.
The requested merger approval of Vine shareholders could lead to a closing of the entire acquisition in the fourth quarter of the year.


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