Exterran (NYSE:EXTN) stock is rocketing higher on Monday following news of a merger with Canadian utility company Enerflex.
This merger will have Enerflex acquiring all outstanding shares of EXTN stock. This has it offering 1.021 shares of its own stock for each share of EXTN. That will result in 124 million shares of Enerflex stock outstanding after the deal.
According to the two companies, the combined enterprise value of the two companies will be $1.5 billion. It’s worth noting that the deal represents an enterprise value of $735 million for Exterran. That represents an 18% premium to its enterprise value when markets closed on Friday.
When the deal comes to a close, Exterran shareholders will have a 27.5% stake in Enerflex. Current Enerflex shareholders will hold the remaining 72.5% stake in the company. Also, Enerflex will continue to trade on the Toronto Stock Exchange. It also intends to apply for a new listing on the New York Stock Exchange or Nasdaq Exchange.
Marc Rossiter, president and CEO of Enerflex, said the following about the deal boosting EXTN stock higher today.
“The Transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform.”
Today’s news has EXTN stock experiencing heavy trading. As of this writing, more than 38 million shares have changed hands. That’s quite the jump from its daily average trading volume of about 334,000 shares.
EXTN stock is up 47% as of Monday morning.
There’s more stock market news for traders to dive into below!
We’ve got all the latest stock coverage traders need to know about for Monday. Among that is why stocks are down today, what has Kohl’s (NYSE:KSS) shares rising, as well as this morning’s biggest pre-market stock movers. You can find out more about these matters at the following links!
More Monday Stock Market News
- Market Update: Why Are Stocks Down Today?
- KSS Stock Alert: What Is Going on With Kohl’s Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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