An investigation was announced concerning whether the takeover of Jagged Peak Energy Inc. is unfair to NYSE: JAG stockholders.
Investors who purchased shares of Jagged Peak Energy Inc. (NYSE: JAG) and currently hold any of those NYSE: JAG shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of Jagged Peak Energy Inc. breached their fiduciary duties owed to NYSE: JAG investors in connection with the proposed acquisition.
Denver, CO based Jagged Peak Energy Inc. operates as an independent oil and natural gas company.
On October 14, 2019, Parsley Energy, Inc. (NYSE: PE) and Jagged Peak Energy Inc. (NYSE: JAG) announced they have entered into a merger agreement under which Parsley will acquire Jagged Peak in an all-stock transaction valued at approximately $2.27 billion, including Jagged Peak’s net debt of approximately $625 million as of June 30, 2019. Under the terms of the agreement, Jagged Peak shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged Peak common stock they own. This represents $7.59 per Jagged Peak share based on Parsley’s closing price on October 11, 2019.
However, given that at least one analyst has set the high target price for NYSE: JAG shares at $14.00 per share and given that NYSE: JAG shares reached in early 2018 as high as $16.33 per share, the investigation concerns whether the offer is unfair to NYSE: JAG stockholders.
In addition, given that Jagged Peak Energy Inc’s controlling shareholder, Quantum Energy Partners, which owns approximately 68 percent of the outstanding voting shares of Jagged Peak, has already committed to vote its shares in favor of the transaction, the
investigation concerns whether the Jagged Peak Energy Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Jagged Peak Energy Inc. reported that its annual Total Revenue rose from $267.31 million in 2017 to $581.64 million in 2018 and that its Net Loss of $451.93 million in 2017 turned into a Net Income of $165.45 million in 2018.
Shares of Jagged Peak Energy Inc. (NYSE: JAG) closed on October 21, 2019, at $6.93 per share.
Those who are current investors in Jagged Peak Energy Inc. (NYSE: JAG) shares have certain options and should contact the Shareholders Foundation.
Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
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Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
