Tellurian to be Acquired by Woodside for Approximately $900 Million
Tellurian Inc. (NYSE American: TELL) has announced a definitive agreement with Woodside Energy Group (ASX: WDS) for an all-cash acquisition of Tellurian at $1.00 per share, valuing the company at approximately $900 million. The offer represents a 75% premium to Tellurian's closing price on July 19, 2024, and a 48% premium to its 30-day volume weighted average price. The total enterprise value, including net debt, is about $1.2 billion. The transaction, unanimously approved by both boards, is expected to close in Q4 2024, subject to shareholder and regulatory approvals. This acquisition reflects Tellurian's progress in executing its refreshed strategy and advancing the Driftwood LNG project.
Tellurian Inc. (NYSE American: TELL) ha annunciato un accordo definitivo con Woodside Energy Group (ASX: WDS) per un'acquisizione in contante di Tellurian a 1,00 $ per azione, valorizzando la compagnia a circa 900 milioni di dollari. L'offerta rappresenta un premio del 75% rispetto al prezzo di chiusura di Tellurian del 19 luglio 2024 e un premio del 48% rispetto al suo prezzo medio ponderato per volume negli ultimi 30 giorni. Il valore totale dell'azienda, inclusi i debiti netti, è di circa 1,2 miliardi di dollari. La transazione, approvata all'unanimità da entrambi i consigli, dovrebbe chiudersi nel Q4 2024, soggetta all'approvazione degli azionisti e delle autorità di regolamentazione. Questa acquisizione riflette i progressi di Tellurian nell'eseguire la sua strategia rinnovata e nel portare avanti il progetto Driftwood LNG.
Tellurian Inc. (NYSE American: TELL) ha anunciado un acuerdo definitivo con Woodside Energy Group (ASX: WDS) para una adquisición totalmente en efectivo de Tellurian a 1,00 $ por acción, valorando la compañía en aproximadamente 900 millones de dólares. La oferta representa un premio del 75% sobre el precio de cierre de Tellurian del 19 de julio de 2024 y un premio del 48% sobre su precio medio ponderado por volumen de los últimos 30 días. El valor total de la empresa, incluyendo la deuda neta, es de alrededor de 1,2 mil millones de dólares. La transacción, aprobada unánimemente por ambos consejos, se espera que se cierre en Q4 2024, sujeta a la aprobación de los accionistas y a regulaciones. Esta adquisición refleja el progreso de Tellurian en la implementación de su estrategia renovada y en el avance del proyecto Driftwood LNG.
텔루리안 주식회사 (NYSE American: TELL)는 우드사이드 에너지 그룹 (ASX: WDS)과 현금 인수에 대한 최종 계약을 체결했으며, 주당 1.00 달러로 텔루리안을 인수하여 회사 가치를 약 9억 달러로 평가하고 있습니다. 이 제안은 2024년 7월 19일의 텔루리안 종가에 대해 75% 프리미엄을 제공하며, 최근 30일의 거래량 가중 평균 가격에 대해 48% 프리미엄을 나타냅니다. 순부채를 포함한 총 기업 가치는 약 12억 달러입니다. 양측 이사회에서 만장일치로 승인된 이번 거래는 2024년 4분기에 주주 및 규제 당국의 승인을 받는 대로 마무리될 것으로 예상하고 있습니다. 이번 인수는 텔루리안의 새롭게 다듬어진 전략 이행 및 드리프트우드 LNG 프로젝트를 진전시키고 있는 성과를 반영합니다.
Tellurian Inc. (NYSE American: TELL) a annoncé un accord définitif avec Woodside Energy Group (ASX: WDS) pour une acquisition entièrement en espèces de Tellurian à 1,00 $ par action, valorisant la société à environ 900 millions de dollars. L'offre représente une prime de 75% par rapport au prix de clôture de Tellurian du 19 juillet 2024 et une prime de 48% par rapport à son prix moyen pondéré par le volume sur les 30 derniers jours. La valeur totale de l'entreprise, incluant la dette nette, est d'environ 1,2 milliard de dollars. La transaction, approuvée à l'unanimité par les deux conseils, devrait être finalisée au Q4 2024, sous réserve de l'approbation des actionnaires et des régulateurs. Cette acquisition reflète les progrès de Tellurian dans l'exécution de sa stratégie mise à jour et le développement du projet Driftwood LNG.
Tellurian Inc. (NYSE American: TELL) hat eine endgültige Vereinbarung mit der Woodside Energy Group (ASX: WDS) über eine barbezahlte Übernahme von Tellurian zu 1,00 $ pro Aktie angekündigt, was das Unternehmen mit etwa 900 Millionen Dollar bewertet. Das Angebot stellt einen 75% Aufschlag auf den Schlusskurs von Tellurian am 19. Juli 2024 dar und einen 48% Aufschlag auf den volumen-weighted Durchschnittspreis der letzten 30 Tage. Der gesamte Unternehmenswert, einschließlich der Nettoverbindlichkeiten, beträgt etwa 1,2 Milliarden Dollar. Die Transaktion, die einstimmig von beiden Vorständen genehmigt wurde, soll im Q4 2024 geschlossen werden, vorbehaltlich der Genehmigungen der Aktionäre und der Aufsichtsbehörden. Diese Übernahme reflektiert Tellurians Fortschritte bei der Umsetzung seiner erneuerten Strategie und der Weiterentwicklung des Driftwood LNG-Projekts.
- Substantial premium of 75% to recent share price, providing immediate value to shareholders
- All-cash transaction offering certainty of value
- Total enterprise value of approximately $1.2 billion
- Woodside's better access to financial resources and ability to manage offtake risk
- Potential for accelerated development of Driftwood LNG project
- Loss of independence and potential upside for Tellurian shareholders
- Shareholders lose exposure to future growth of Driftwood LNG project
- Possible job losses or organizational changes post-acquisition
Analysis: The acquisition of Tellurian by Woodside for approximately
The acquisition will likely be beneficial for Woodside, as they acquire a fully permitted and advanced-stage LNG project, which may accelerate their growth in the LNG market. Additionally, Woodside’s stronger financial position and operational expertise reduce the inherent risks associated with the project’s pre-FID (Final Investment Decision) stage.
Short-term Implications: Tellurian’s stock is expected to see a significant increase, aligning closer to the
Long-term Implications: If successfully integrated, Woodside could see long-term benefits through increased LNG production capacity and expanded market presence. This acquisition positions Woodside as a more dominant player in the LNG market, potentially resulting in higher profitability over time.
Analysis: This acquisition signifies a strategic move by Woodside to bolster its LNG portfolio and leverage Tellurian’s advanced-stage projects. The
For retail investors, this acquisition provides a clear signal of Tellurian’s value, validated by Woodside’s willingness to pay a significant premium. The transaction's approval from both boards indicates thorough due diligence and strategic fit.
Industry Context: The LNG market is highly competitive and securing advanced-stage projects like Driftwood positions Woodside to capitalize on the global demand for cleaner energy sources. The market could react positively to Woodside’s expansion strategy, seeing it as a proactive measure to maintain and grow their market share.
Risks and Considerations: While the acquisition provides immediate benefits, Woodside must manage integration risks and ensure the Driftwood project meets expected timelines and budgets. Successful integration is important for realizing the anticipated long-term value.
Analysis: From a technological perspective, the acquisition of Tellurian by Woodside is vital due to the advanced nature of the Driftwood LNG project. Partnerships with Bechtel, Baker Hughes and Chart indicate robust technological foundations. This expertise is valuable for Woodside, aiming to enhance their LNG infrastructure and operational efficiency.
Technological Impact: The integration of Tellurian’s technology and project management skills will likely streamline Woodside’s LNG production processes. These collaborations support advanced engineering, construction and operational efficiencies, important for expanding LNG capacities.
Strategic Value: For Woodside, acquiring advanced technology and expertise not only boosts their operational capabilities but also helps mitigate risks associated with complex LNG projects. This strategic move ensures Woodside stays competitive and technologically advanced in the energy sector.
- All-cash transaction provides substantial and certain value to Tellurian shareholders
- Offer reflects new leadership’s progress executing the company’s refreshed strategy
“This transaction provides substantial and certain value for our shareholders. Following our strategic repositioning in December, our new leadership has strengthened Tellurian’s position and advanced Driftwood LNG. Woodside’s offer reflects this progress, providing a significant premium to our share price,” said Martin Houston, Executive Chairman, Tellurian Board of Directors. “After careful consideration of Tellurian’s opportunities and challenges, the Board and senior management weighed an immediate and significant cash return against the risks and costs associated with the timeline to FID and determined that this offer is in our shareholders’ best interest. Woodside is a highly credible operator, with better access to financial resources and a greater ability to manage offtake risk, and I am confident it is the right developer to take Driftwood forward.”
The acquisition price represents a
In conjunction with today’s announcement, Tellurian has issued a letter to shareholders, which can be accessed at https://ir.tellurianinc.com/financials-filings-and-presentations/presentations.
Lazard is serving as financial advisor and Akin Gump Strauss Hauer & Feld LLP is serving as legal counsel to Tellurian.
About Tellurian Inc.
Tellurian aims to generate shareholder value by establishing a competitive LNG enterprise, effectively supplying natural gas to customers worldwide. Headquartered in
About Woodside
Woodside led the development of the LNG industry in
Additional Information and Where to Find It
Tellurian Inc. (“Tellurian”), the members of Tellurian’s board of directors and certain of Tellurian’s executive officers are participants in the solicitation of proxies from stockholders in connection with the transaction described in this communication (the “Merger”). Tellurian plans to file a proxy statement (the “Transaction Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies to approve the Merger. Information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, will be included in the Transaction Proxy Statement and other relevant documents to be filed with the SEC in connection with the Merger. Additional information about such participants is available in Tellurian’s definitive proxy statement in connection with its 2024 Annual Meeting of Stockholders (the “2024 Proxy Statement”), which was filed with the SEC on April 25, 2024, under “Proposal 1—Election of Directors to the Company’s Board—Background Information About the Nominees and Other Directors,” “Proposal 1—Election of Directors to the Company’s Board—Executive Officers,” “Compensation Discussion and Analysis” and “Security Ownership of Certain Beneficial Owners and Management.” To the extent that holdings of Tellurian’s securities have changed since the amounts printed in the 2024 Proxy Statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Information regarding Tellurian’s transactions with related persons is set forth under the caption “Certain Relationships and Related Party Transactions” in the 2024 Proxy Statement.
Promptly after filing the definitive Transaction Proxy Statement with the SEC, Tellurian will mail the definitive Transaction Proxy Statement to each stockholder entitled to vote at the special meeting to consider the adoption of the Agreement and Plan of Merger, dated as of July 21, 2024, by and among Woodside Energy Holdings (NA) LLC, Tellurian, and Woodside Energy (Transitory) Inc. (the “Merger Agreement”). STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT TELLURIAN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by Tellurian with the SEC in connection with the Merger at the SEC’s website (http://www.sec.gov). Copies of Tellurian’s definitive Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by Tellurian with the SEC in connection with the Merger will also be available, free of charge, at Tellurian’s investor relations website (https://tellurianinc.com).
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements within the meaning of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240721051555/en/
Media:
Jason French
Executive Director, Corporate Communications
Phone +1.832.320.9247
jason.french@tellurianinc.com
Investors:
Matt Phillips
Vice President, Investor Relations
Phone +1.832.320.9331
matthew.phillips@tellurianinc.com
Johan Yokay
Director, Investor Relations
Phone+1.832.320.9327
johan.yokay@tellurianinc.com
Source: Tellurian Inc.
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