Notable Mergers and Acquisitions of the Day 03/16: (ARP)/(CRZO) (INTC) (COGO)
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- Atlas Resource Partners, L.P. (NYSE: ARP) has entered into a definitive purchase and sale agreement to acquire approximately 277 bcfe of proved reserves, including undeveloped drilling locations, in the Barnett Shale in Texas from Carrizo Oil & Gas (Nasdaq: CRZO) for approximately $190 million, or $0.69 per mcfe. The transaction has been approved by ARP’s board of directors, and will be effective as of January 1, 2012, with an expected closing in late April, subject to customary closing conditions.
This transaction is expected to be immediately accretive to ARP’s adjusted EBITDA and distributable cash flow. Based on this transaction, ARP is increasing its distribution guidance for the second half of 2012 from $0.80 per limited partner common unit (implied from the previous full year 2012 distribution guidance of $1.60) to a range of $0.85 to $0.90. In addition, ARP is introducing full year 2013 distribution guidance in a range of $2.25 to $2.40 per unit, a 45% increase over the original full year 2012 guidance of $1.60. Both second half 2012 and full year 2013 distribution expectations assume a coverage ratio of approximately 1.2x.
Impact on results:
- Second half of 2012: $0.85 to $0.90 per limited partner unit; and
- Full year 2013: $2.25 to $2.40 per limited partner unit
- Intel (Nasdaq: INTC) has invested $21 million for a 10 percent working stake in Tobii.
According to TechCrunch, Tobii is "a Swedish company that has been working for years on eye-tracking laptops and other devices."
Tobii isn't profitable and saw a net loss of about $3.5 million in 2010. The company did just release its next-generation eye tracking integration component, the Tobii IS-2 Eye Tracker, just last week. Tobii notes that the new device is "is smaller, cheaper, better, and draws less power than its predecessor."
- After the market closed Thursday, Cogo Group (Nasdaq: COGO) announced that its founder, CEO and Chairman, Jeffrey Kang, proposed to the Cogo Board of Directors that he purchase a series of operating entities accounting for approximately 30% of Cogo's total assets, liabilities and revenue through his personal investment venture, Envision Global Group.
The total purchase price is expected to be between $60 million and $82 million, depending on the results of an appraisal by an appraisal firm. The deal is expected to close during the second quarter of 2012, subject to approval by an audit committee that is comprised of the independent directors on Cogo's Board. Since this is a related-party transaction, the audit committee will oversee the entire process through to the deal's closure.
The transaction provides an implied share valuation of $6-$8 a share. At the NASDAQ close on March 13, Cogo's share price stood at $1.84 a share.
Subject to stockholder approval, a portion of the proceeds of the sale will be used to fund a buyback of up to 10 million of Cogo's outstanding shares.
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