CPE - Why APA & Callon Petroleum Shares Are Moving In Opposite Direction On Merger Deal | Benzinga
APA Corp (NASDAQ: APA) and Callon Petroleum Company (NYSE: CPE) shares are moving in opposite directions after the companies inked a merger deal.
In particular, APA will acquire CPE in an all-stock transaction valued at about $4.5 billion (including CPE's debt).
As per the terms, each share of CPE common stock will be exchanged for a fixed ratio of 1.0425 shares of APA shares, representing an implied value to each CPE share of $38.31 based on the closing price of APA common stock on January 3, 2024.
Post closure, existing APA shareholders will own around 81% of the combined company, and CPE will own about 19%.
APA expects to retire the existing debt at ...