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Investing.com -- Diversified Energy Company PLC (NYSE:DEC) stock dropped 6.3% in premarket trading Wednesday after major shareholders announced the pricing of a secondary offering of 5.7 million shares.
The offering, priced at $13.75 per share, consists entirely of shares sold by certain funds managed by EIG, FS/EIG Advisor, LLC, and entities managed by FS/KKR Advisor, LLC. Diversified Energy will not receive any proceeds from the transaction as it involves existing shares rather than newly issued stock.
The selling stockholders have also granted underwriters a 30-day option to purchase up to an additional 857,002 shares at the same price. The secondary offering is expected to settle on September 18, 2025, subject to customary closing conditions.
In a related transaction, the Diversified Employee Benefit Trust has indicated interest in purchasing 750,000 shares from the underwriters at the public offering price, representing a total consideration of $10,312,500. This transaction constitutes a related party transaction as the initial sellers include entities managed by an affiliate of EIG, which is associated with Diversified director Randy Wade.
The shares being sold were originally issued by Diversified as consideration for its acquisition of Maverick Natural Resources, LLC, which closed on March 14, 2025.
Mizuho and Raymond James are serving as joint book-running managers and representatives of the underwriters, with Citigroup also acting as a joint book-running manager for the offering.
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