KLX Energy: Jumps on merger deal with Quintana Energy Services

KLX Energy Services Holdings

04/05/2020 11:44

** Shares of oilfield services provider  KLXE.O  rise
56.4%to $1.69 premarket 
    ** On Sunday, KLX announced an all-stock merger with
Quintana Energy Services  QES.N , in which QES shareholders will
receive 0.4844 shares of KLXE common stock each  urn:newsml:reuters.com:*:nGNX382vLw 
    ** Deal represents ~47% discount to QES' last close
    ** Post merger, KLXE will own 59% and QES shareholders will
own 41% of the equity on a fully diluted basis
    ** The combined company will retain the KLXE name and
ticker, while the corporate headquarters will move to Houston,
Texas 
    ** Deal to generate annualized cost synergies of at least
$40 mln within 12 months; expected to close in H2 2020
    ** As of last close, KLXE fell 83.2% YTD

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com))