The logo of Tellurian. (Photo credit: Yahoo)
Tellurian Inc. (NYSE American: TELL) announced that it has signed a definitive agreement with Woodside Energy Group Ltd (ASX: WDS) under which Woodside will purchase all outstanding Tellurian shares for $1.00 per share in an all-cash deal.
“This deal provides substantial and certain value for our shareholders,” said Martin Houston, Executive Chairman of Tellurian's Board of Directors. He noted that since Tellurian’s strategic repositioning in December, the new leadership has strengthened the company and advanced the Driftwood LNG project. Houston added that Woodside’s offer, which represents a significant premium to Tellurian’s share price, reflects the progress made. After weighing the risks and costs of continuing the project versus the immediate cash return, the Board and senior management concluded that the offer is in the shareholders’ best interest. Woodside, a credible operator with better financial resources, is seen as the right developer to take Driftwood LNG forward.
The acquisition price represents a 75% premium to Tellurian’s closing price on July 19, 2024, and a 48% premium to its 30-day volume-weighted average price. The total enterprise value of the transaction, including net debt, is approximately $1.2 billion. Both companies’ boards of directors have unanimously approved the transaction, which is expected to close in Q4 2024, subject to customary conditions, including approval from Tellurian shareholders and regulatory authorities.
Tellurian has issued a letter to shareholders about the announcement, accessible on its website. Lazard is serving as financial advisor, and Akin Gump Strauss Hauer & Feld LLP is providing legal counsel to Tellurian.
Tellurian aims to create shareholder value by building a competitive LNG business, supplying natural gas worldwide. Based in Houston, Texas, Tellurian is developing the Driftwood LNG export facility and pipeline network. Tellurian trades publicly on the NYSE American under the symbol "TELL."
Woodside pioneered the development of the LNG industry in Australia. Known for its world-class capabilities, Woodside has a focused portfolio as an integrated upstream energy supplier with a 70-year track record. For more information, visit Woodside’s website.
Tellurian’s board members and some executive officers are involved in soliciting proxies from stockholders for the transaction. Tellurian plans to file a proxy statement with the SEC, which will contain important information about the merger. Stockholders are urged to read the proxy statement and other relevant documents when available, as they will include crucial details. These documents will be accessible for free on the SEC’s website and Tellurian’s investor relations page.
This communication includes forward-looking statements regarding the pending merger and its expected timing. There are no guarantees the merger will be completed. Various risks and uncertainties could affect the outcome, including obtaining required approvals and potential impacts on Tellurian’s business operations. For more detailed information, refer to Tellurian’s filings with the SEC.
