The success of any productive and futuristic company depends on the strategic decisions that the company makes. Top among these decisions include when to merge and who to merge with. Mergers are common in business because they not only enhance the ease of doing business but also create more opportunities for growth.
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— talosenergy (@talosenergyllc) February 12, 2013
This is especially true in the energy industry, where competition for resources largely outweighs the supply. As such, mergers are common; as more companies seek to join camps other than competing for the scarce energy sources. The latest merger being between Talos Energy, LLC and Stone Energy Corporation.
Details about the merger
Following the $1.9 billion deal that was recently completed, Talos Energy, LLC is now Talos Energy, Inc. and has its headquarters in Huston, Texas and additional staff in Lafayette and New Orleans. The merger between Talos and Stone Energy Corp will go a long way in building a growth-oriented company that will fully utilize its capacity in the exploration and production of energy. The merger also installs more stable leadership at the top with a combined representation in the Board of Directors that has six members from Talos and four from Stone Energy. Timothy S. Duncan, CEO of Talos Energy is also retained as the CEO of the newly formed Talos Energy, Inc.
More about Talos Energy Merger
Following the merger, Talos trades on the New York Stock Exchange under ticker symbol TALO. Stakeholders of Talos received common shares to the tune of $34.2 million due to their 63% stake in the new company, while shareholders of Stone Energy were renumerated for the other 37%. Due to the all-stock transition the new Talos Energy, Inc has a market value of about $2.5 billion, a situation that Stone’s Interim CEO, James M. Trimble, says will contribute to their success in the markets.
Not only will the newly formed Talos have an edge in terms of market value, but the company will also benefit from a large pool of talented managers. This is according to Stone’s Chairman, Neal P. Goldman, who adds that Talos Energy Inc will now maximize on its combined market share.
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