CNX Resources Corp., one of the largest independent natural gas exploration, development and production companies, has signed a merger agreement with its affiliate CNX Midstream Partners in a $357 million transaction.
Under the merger agreement, CNX will acquire approximately 42.1 million outstanding common units of CNX Midstream that it does not already own at a fixed exchange ratio of 0.88 shares, representing a 15 percent premium to the average exchange ratio during the 30 trading days ending July 24, according to CNX.
CNX will issue 37 million shares in connection with the proposed transaction, representing 17 percent of the total shares outstanding of the pro forma combined entity.
“We believe that this take-in transaction of CNX Midstream Partners is the optimal solution for all relevant stakeholders, given the near- and long-term view of the MLP market,” noted Nicholas DeIuliis, president and CEO. “We expect the combined entity to be an even stronge