Sabine Oil & Gas LLC, backed by First Reserve Corp., agreed to merge with Forest Oil Corp. (FST) in an all-stock transaction to create one of the biggest operators in East Texas.
Sabine unitholders will own 73.5 percent of the combined company, leaving Forest shareholders with 26.5 percent, according to a statement today.
The new company, to be named Sabine Oil & Gas Corp., is expected to be listed on the New York Stock Exchange and will be led by Sabine’s current executive management team. The deal will be tax-free to Forest’s shareholders.
To contact the editor responsible for this story: Stephen Cunningham at scunningha10@bloomberg.net
