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Lilis Energy (LLEX) Receives Non-Binding $0.25/Share Cash Take Private Offer From Major Shareholder

January 13, 2020 6:20 AM EST

Lilis Energy, Inc. (NYSE American: LLEX) (the “Company”), an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico, today announced that it has received a non-binding offer from Värde Partners, Inc., on behalf of various entities affiliated with Värde Partners (collectively, “Värde”), proposing to acquire all of the outstanding shares of common stock of the Company not owned by Värde in a cash merger transaction for $0.25 per common share.

The Värde offer is subject to obtaining customary financing, the recommendation of the Company’s special committee, approval by the Company’s board of directors and Värde's investment committee and entering into a definitive merger agreement with the Company. Any proposed merger transaction would also be subject to requisite approval by the Company’s shareholders. The offer letter indicated the Värde offer would expire on February 17, 2020 and may be withdrawn at any time.

The special committee of the board of directors of the Company, which was formed last November, will evaluate the recent Värde offer as it continues its process of evaluating the potential for other strategic alternatives with the assistance of its financial advisor, Barclays Capital Inc.

Värde holds approximately 23.6 million of the 91.7 million outstanding shares of the Company’s common stock and all of the outstanding preferred stock of the Company, including all of its Series E convertible participating preferred stock. The Series E participating preferred stock currently votes as a single class with the common stock on an as-converted basis as approximately 25.7 million converted shares.

The special committee of the board of directors cautions the Company’s shareholders and others trading in its securities that it has only received a preliminary offer proposal that does not constitute a binding commitment and that no decision has been made with respect to the Company’s response to the offer. There can be no assurance that a definitive agreement will be executed or that the transaction contemplated in the offer or any other transaction will be consummated. The Company does not anticipate making further public statements about this matter or the activities of the special committee unless it determines to enter into a definitive agreement for a transaction or the board of directors determines that no such transaction will be affected.



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