OKLAHOMA CITY (AP) ¿ Privately held oil and gas producer Chaparral Energy Inc. would go public as a result of a deal with United Refining Energy Corp., a company created two years ago to make deals in the energy business.
Under the plan announced late Monday, Chaparral shareholders would have a majority of the shares in the new company which would carry its name and would be led by Chaparral's senior management.
The deal is expected to close by Dec. 11. The combined company's shares will trade on the American Stock Exchange until they are approved for transfer to the New York Stock Exchange, under the ticker symbol "CPR."
Assuming a combined company stock price of about $10 per share, the companies said the total value of the new business would be $1.8 billion.Chaparral shareholders will receive 58 million shares in the combined company, or a 59 percent stake. United Refining shareholders will own 35 percent of the company and the United Refining sponsor will hold a 6 percent stake.