The deal is expected to be completed in the first quarter of 2020
US-based oil and gas company Revolution, an affiliate of Mountain Capital Partners, has signed an agreement to acquire Jones Energy II for nearly $201.5m in cash.
Under the terms of the agreement, Jones Energy stockholders will be given around $14.11 in cash for each share of Jones Energy Class A common stock or each unit of Jones Energy II.
Jones Energy secured approval from board members for transaction
The deal has been approved by the Jones Energy board of directors and a majority of the Jones Energy stockholders.
Jones Energy board chairman Jim Addison said: “We are pleased to reach this comprehensive agreement with Revolution. This announcement marks the completion and successful outcome of the Board’s extensive strategic alternatives process, which has been underway since earlier this year.
“Throughout the course of our exhaustive review, we engaged in meaningful strategic dialog with a significant number of potential counterparties.
“Ultimately, the Board unanimously determined that an all-cash transaction with Revolution is in the best interests of our shareholders and the Company and will deliver the strongest economic value relative to the comprehensive range of alternatives we examined.”
For the transaction, Evercore and TD Securities (USA) are acting as financial advisors to Jones Energy while Baker Botts is serving as its legal counsel. On the other hand, Kirkland & Ellis is serving as legal counsel for Revolution.
The deal is expected to be completed in the first quarter of 2020.
Independent oil and natural gas company Jones Energy is engaged in the development and acquisition of oil and natural gas properties in the Anadarko basin of Oklahoma and Texas.
On the other hand, Oklahoma–based Revolution is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Mid-Continent region of the United States.
Revolution’s affiliate Mountain Capital Partners is an energy focused private equity fund based in Houston, Texas with around $1bn in assets under management.