IGas has announced the acquisition of Dart Energy for approximately A$211.5 million (US$197 million). Dart shareholders will receive 0.08117 IGas shares for each Dart share, equivalent to A$0.1898 per Dart share. Dart shareholders will hold approximately 30.5% of the enlarged company.
The new company will hold the largest area in the UK under licence of over 1 million net acres including major UK shale basins.
Dart announced that is has cancelled its planned listing on the AIM Market of the London Stock Exchange.
IGas' CEO Andrew Austin said: "This transaction puts IGas at the heart of unlocking Britain's energy potential… The transaction further strengthens our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain."
Dart's CEO John McGoldrick added: "We believe this transaction is in the best interests of Dart shareholders - both in terms of the immediate premium being achieved, and in terms of the ability to participate in the long-term value creation potential of the UK shale industry, which we consider will be one of the defining energy market stories of this century."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.