Shares of Archaea Energy (NYSE: LFG) popped in pre-market trading on Monday after the renewable natural gas company announced that it had been acquired by energy giant bp (BP) for around $26 per share with a total enterprise value of $4.1 billion.
This consideration also includes around $800 million of Archaea’s net debt. bp’s cash consideration represents around 38% premium to Archaea’s volume-weighted average share price for the 30 days ending October 14.
The transaction is expected to close by the end of this year.
Daniel Rice, Chairman of Archaea’s Board commented, “After a thorough review, our Board determined that combining Archaea’s RNG assets and our strong development backlog with bp’s existing bioenergy business and deep operational and financial resources is the best way to create a stronger platform to achieve Archaea’s full potential while maximizing value for our shareholders.”
