Tellurian Inc. ("Tellurian") has announced its agreement to be acquired by Woodside Energy Group Ltd ("Woodside") in a definitive all-cash transaction. The acquisition price represents a 75% premium to Tellurian’s closing price on July 19, 2024, and a 48% premium to Tellurian’s 30-day volume weighted average price. This substantial premium reflects the progress made by the new leadership in executing the company’s refreshed strategy.
The implied total enterprise value of the transaction, including net debt, is approximately $1.2 billion. This represents a significant deal for both companies and underscores the value placed on Tellurian's assets and strategic positioning in the LNG market.
The transaction, which was unanimously approved by both boards of directors, is expected to close in Q4 2024, subject to customary closing conditions, including approval from Tellurian shareholders and the receipt of regulatory approvals.
This development comes as Tellurian issued a letter to shareholders, emphasizing the substantial and certain value the transaction offers to shareholders. The company's choice to accept the offer reflects a careful consideration of the opportunities and challenges facing Tellurian, with a focus on maximizing shareholder value.
The financial advisory and legal counsel for Tellurian in this transaction are Lazard and Akin Gump Strauss Hauer & Feld LLP, respectively.
This acquisition marks a significant milestone for Tellurian, as it provides a clear indication of the company’s strengthened position and the value attributed to its resources and development projects. As a result of these announcements, the company's shares have moved -7.3% on the market, and are now trading at a price of $0.57. Check out the company's full 8-K submission here.
