Why Is TransGlobe Energy (TGA) Stock Up 2% Today?

  • TransGlobe Energy (TGA) stock is rising on merger news today.
  • It plans to combine with Vaalco Energy (EGY) in a $307 million deal.
  • This will have TGA holders trading their stock for EGY shares.
The letters "M&A" on a wooden table, surrounded by a calculator and other business items. TGA Stock

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TransGlobe Energy (NASDAQ:TGA) stock is gaining on Thursday as investors react to news of a merger agreement with Vaalco Energy (NYSE:EGY).

The details of the deal include Vaalco Energy acquiring all outstanding shares of TGA stock. This will have it using its own stock to fuel the purchase of TransGlobe Energy shares in a deal valued at $307 million.

The deal will result in shareholders of TGA stock receiving 0.6727 shares of EGY stock for each share that they hold. This represents a 24.9% premium to the 30-day volume weighted average share prices for TGA as of July 13.

When the deal closes, TGA shareholders will own 45.5% of the combined company. The remaining 54.5% will be owned by current holders of EGY stock. Also, the two companies expect better liquidity and visibility for shareholders as a result of the deal.

Both companies’ Board of Directors have approved the deal. Now it needs approval from regulators and shareholders to move forward. At least 66.6% of TGA shareholders will have to vote in favor of the merger before it can close. Current plans have the deal closing in the second half of the year.

TGA is seeing heavy trading today alongside the merger news. This has some 3 million shares of TGA stock on the move as of this writing. That’s well above its daily average trading volume of about 1.2 million shares.

TGA stock is up 1.9% and EGY stock is 17.8% as of Thursday morning.

Investors seeking more stock market news are in the right place!

We’ve got all the hottest stock news traders need to know about for Thursday! Among that is what has shares of Novavax (NASDAQ:NVAX), Canoo (NASDAQ:GOEV) and EVgo (NASDAQ:EVGO) stock on the move today. You can find out all about that at the links below!

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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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