Transmeridian Exploration will merge with Trans Meridian

01 Jan 2008

Independent energy firm Transmeridian Exploration has agreed to merge with Trans Meridian International, a British Virgin Islands company formed by its chief executive officer Lorrie Olivier.

Under the terms, Trans Meridian International will commence a tender offer to buy all of Transmeridian Exploration's common stock at $3 a share, a 114 per cent premium to its $1.40 closing price on Friday 28 December.

The deal places an enterprise value of about $825 million on Transmeridian Exploration. The merger agreement permits the company to solicit competing offers for acquiring it until the financing condition to Trans Meridian International's obligation to commence the tender offer is satisfied.