Pedevco (NYSEAMERICAN:PED) news for Thursday concerning its interest in acquiring SandRidge Permian Trust (NYSE:PER) has PED stock flying higher.
Pedevco revealed its desire to acquire SandRidge Permian Trust via an open letter sent out on Wednesday. The letter was sent to The Bank of New York Mellon Trust Company, which is a trustee of SandRidge Permian Trust.
A Pedevco news release reveals the details from the company’s open letter. In it, the company claims that SandRidge Permian Trust is likely to be delisted from the New York Stock Exchange in less than a year. It also says that this would result in the liquidation of its assets.
Pedevco proposes that it acquire SandRidge Permian Trust before this happens. It argues that doing so would allow the trustees to best salvage the assets belonging to the trust. The company also says that allowing it to acquire the trust could result in trustees growing their investment in the trust.
The Pedevco open letter also has the company claiming that it would be a strong business partner that could best manage SandRidge Permian Trust’s assets. It cites its familiarity with those assets as the reason behind this.
J. Douglas Schick, president of Pedevco, said this in the news release.
“In June 2018, SK Energy, owned and controlled by our largest shareholder, Dr. Simon Kukes, similarly saved PEDEVCO from near-certain delisting from the NYSE and being taken over by its creditors, completely turning PEDEVCO around to emerge as the strong and stable company PEDEVCO is today. We are now hopeful that the Trustee and common unit holders of the SandRidge Permian Trust, and Avalon as the operator of the underlying assets, will see the wisdom and opportunity of the transaction proposed by PEDEVCO, which we believe will likewise result in a success story for their equity holders with significant upside potential through ownership in a stronger combined entity.”
PED stock was up 207.7% and PER stock was up 57.6% on Thursday before trading was halted.
As of this writing, William White did not hold a position in any of the aforementioned securities.
