The company priced the secondary offering at $23.75 per share, with an additional 6.95-million-share option granted to underwriters for a 30-day window. This transaction, expected to close Wednesday, serves as a primary funding mechanism for the WildFire acquisition and the reduction of existing corporate debt. By leveraging these proceeds, Magnolia Oil & Gas aims to stabilize its balance sheet while absorbing the assets of its competitor.
Magnolia Oil & Gas Shares Slide Following $4.06 Billion Acquisition Plan
Magnolia Oil & Gas shares tumbled 6.6% to $23.85 in Tuesday premarket trading as the company finalized the pricing of a 46.3 million-share offering. The move follows Monday's announcement that the firm intends to acquire WildFire Energy for approximately $4.06 billion, a deal currently driving investor sentiment.
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