WhiteHawk Energy Proposes To Combine With PHX Minerals, Inc. In Stock-for-Stock Transaction; PHX Stockholders Would Own ~61% Of The Pro Forma Equity Of Whitehawk Minerals Corporation And Receive A One-Time $0.20/Share Cash Dividend
Portfolio Pulse from Benzinga Newsdesk
WhiteHawk Energy has proposed a stock-for-stock transaction to combine with PHX Minerals, Inc. If the proposal is accepted, PHX stockholders would own approximately 61% of the pro forma equity of the newly-formed WhiteHawk Minerals Corporation and receive a one-time $0.20 per share cash dividend. The proposed combination would provide PHX stockholders with an ability to participate in enhanced scale and additional mineral and royalty assets in the core of the Haynesville Shale and Marcellus Shale. However, PHX's board of directors has shown unwillingness to engage in discussions regarding the proposed transaction.
August 09, 2023 | 1:45 pm
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PHX Minerals, Inc. has received a proposal from WhiteHawk Energy for a stock-for-stock transaction. If accepted, PHX stockholders would own approximately 61% of the pro forma equity of the newly-formed WhiteHawk Minerals Corporation and receive a one-time $0.20 per share cash dividend.
The proposed transaction would result in PHX stockholders owning a majority stake in the new entity, which could potentially increase the value of their holdings. The one-time cash dividend would also provide immediate returns to PHX stockholders. However, the unwillingness of PHX's board of directors to engage in discussions regarding the proposed transaction introduces uncertainty.
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