RTTNews | Aug 11, 2021 07:30AM EDT

07:30 Wednesday, August 11, 2021 (RTTNews.com) - Chesapeake Energy Corp. (CHK) agreed to buy Vine Energy Inc. (VEI) for total consideration of $15.00 per share, valuing the company at around $2.2 billion.

As per the terms of the merger agreement, which was unanimously approved by the Board of Directors of each company, Vine shareholders will receive a fixed exchange ratio of 0.2486 Chesapeake shares of common stock and $1.20 of cash for each share of Vine common stock owned. Upon closing, Chesapeake shareholders will own approximately 86% and Vine shareholders will own approximately 14% of the fully diluted shares of the combined company.

The transaction is expected to close in the fourth quarter of 2021. Funds managed by The Blackstone Group Inc. own approximately 70% of outstanding shares of Vine common stock and have entered into a support agreement to vote in favor of the transaction.

Following completion of the transaction, Chesapeake expects to raise its base dividend by 27% to $1.75 per share as a result of the significant increase in free cash flow which reaches approximately $6 billion over the next five years.

Read the original article on RTTNews ( https://www.rttnews.com/3218034/chesapeake-energy-to-buy-vine-energy-in-2-2-bln-deal.aspx)

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