SWN Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Proposed Merger of Southwestern Energy With Chesapeake Energy
On January 11, 2024, Southwestern announced that it had agreed to merge with Chesapeake in an all-stock transaction under which each Southwestern common share will be exchanged at a fixed ratio for 0.0867 shares of Chesapeake common stock.
MONSEY, N.Y., Jan. 11, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed merger of Southwestern Energy Company (NYSE: SWN) (“Southwestern”) with Chesapeake Energy Corporation (“Chesapeake”) in an all-stock transaction that values Southwestern at approximately $6.69 per share, which is below the closing price for Southwestern stock of $6.89 per share on January 10, 2024, and below the average price target of Wall Street analysts of $7.87 per share, according to TipRanks.
If you remain a Southwestern shareholder and have concerns about the fairness of the deal price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/southwestern-energy/
Alternatively, you may contact us by phone at 866-833-6245, or via email at [email protected].
Why is there an investigation?
On January 11, 2024, Southwestern announced that it had agreed to merge with Chesapeake in an all-stock transaction under which each Southwestern common share will be exchanged at a fixed ratio for 0.0867 shares of Chesapeake common stock. The exchange values Southwestern at approximately $6.69 per share based on Chesapeake’s closing price on January 10, 2024.
“We are investigating whether the Southwestern Board of Directors acted in the best interests of Southwestern shareholders in approving the merger,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the exchange ratio agreed upon is fair to Southwestern shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, the implied value of Southwestern in the merger of approximately $6.69 per share is below the closing price of Southwestern on January 10, 2024, of $6.89 per share. Thus, the deal represents a negative premium for Southwestern shareholders.
Further, according to TipRanks, the implied deal value of $6.69 per Southwestern share is well below the price target of multiple Wall Street analysts for Southwestern, including Scotiabank: $10.00; Truist Financial: $9.00; J.P. Morgan: $8.50; Stifel Nicolaus: $8.50; and Citibank: $8.00.
Finally, several Southwestern shareholders publishing to SeekingAlpha have expressed displeasure with the deal price, with one Southwestern investor stating “utterly disappointed,” and another Southwestern investor also describing the deal as “a disappointment.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
[email protected]
www.wohlfruchter.com
