Douglas Miller, chief executive of EXCO Resources, has proposed a management-led buyout of the oil and natural gas company at a valuation of $4.36 billion, Reuters reported. Miller said in a letter that EXCO shareholders T. Boone Pickens, Oaktree Capital Management and Ares Management have expressed interest in the deal. Miller, who holds a 2.15% stake in the company, offered to pay $20.50 per share, a 38% premium over Friday’s closing price.
(Reuters) – EXCO Resources Inc said it got a management-led buyout offer from its chief executive, valuing the oil and natural gas company at about $4.36 billion.
CEO Douglas Miller, who has a 2.15 percent stake in the company, offered to buy the remaining shares at $20.50 apiece — a premium of 38 percent to the company’s Friday close of $14.83.
Oilman and natural gas proponent, T. Boone Pickens, as well as the company’s largest stakeholder, Oaktree Capital Management LP, and Ares Management LLC, have expressed an interest in pursuing the deal, Miller said in a letter to the company.
Boone Pickens has a 5 percent stake in the company. As of June 30, Oaktree Capital had a 16.4 percent stake in the company, while Ares Management held a 6.06 percent stake, according to Thomson Reuters data.
EXCO intends to form a special committee to consider the proposal, the company said in a statement.
In early August, it posted a second-quarter profit that trailed analysts’ estimates on lower oil and gas revenue due to asset divestitures and joint venture deals.[ID:nSGE6710M3]
Shares of the Dallas, Texas-based company were up 40 percent in early trade.
Miller’s financial advisors for the deal are J.P. Morgan Securities LLC and Goldman Sachs & Co. (Reporting by Vaishnavi Bala in Bangalore; Editing by Aradhana Aravindan)