Energy XXI Gulf Coast Inc (NASDAQ: EGC) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced an update with regard to a merger agreement, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The merger update;
- what we’re seeing from EGC stock as a result; and
- what we’ll be watching for ahead.
EGC Announces Merger Update
As mentioned above, Energy XXI Gulf Coast is having an incredibly strong start to the trading session this morning after the company announced an update with regard to a merger agreement. In a press release issued early this morning, the company said that it and Cox Oil have jointly agreed to extend the closing date of the merger to October 17, 2018.
EGC said that it and Cox started the closing process at 7:15 Central Time this morning and expects that the merger of the two companies will be completed within the next couple of hours.
The merger, announced on June 18, 2018, includes the acquisition of all EGC shares by Cox at a price of $9.10 per share in cash. The total value of the acquisition comes to approximately $322 million.
What We’re Seeing From The Stock
One of the first lessons that we learn as investors is that the news moves the market. In the case of Energy XXI Gulf Coast, the news proved to be overwhelmingly positive as this acquisition will provide value to shareholders and will close today. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:51), EGC is trading at $9.03 per share after a gain of $0.71 per share or 8.53% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EGC. In particular, we’re interested in following the acquisition to see if it does indeed close today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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