Under the terms of the agreement, Sabine and Forest will combine their businesses in an all-stock transaction.
Sabine Oil & Gas is a privately held natural gas and oil company.
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Once the merger is complete, Sabine unit holders will own 73.5% of the newly combined company, Forest shareholders will own 26.5%.
The Sabine Oil & Gas Corporation, as the company will be called following the merger, is expected to list on the New York Stock Exchange under the ticker SABO.
TheStreet Ratings team rates FOREST OIL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FOREST OIL CORP (FST) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: