Edge - Chaparral Merger A No-Go

The all cash transaction was cancelled as a result of the lack of debt and equity financing.

Dec 17, 2008 - Mergers Unleased - By AVRAM DAVIS - Edge Petroleum and Chaparral Energy have terminated the all-stock merger, due to lack of debt and equity financing. Chaparral was to acquire Edge, with Edge stockholders receiving 0.2511 shares of Chaparral for each share of Edge stock. Edge and Chaparral are both oil and natural gas companies, based in Houston, Texas and Oklahoma City, Oklahoma respectively.

The companies cancelled the transaction as it became apparent that it was “highly unlikely” that the conditions necessary for the deal to close would be satisfied. It was necessary for the conditions of the merger agreement to be met by December 31, 2008, and the companies were not able to raise sufficient debt and equity financing. Read more.