Cox Oil-Energy XXI merger postponed

Energy XXI Gulf Coast (EGC) and Cox Oil LLC have agreed to postpone the closing date of the proposed merger by one week.

EGC said on Thursday that the companies agreed to extend the required closing date to October 17, 2018.

According to the company, this extension is not a waiver of obligations under the merger agreement.  The closing of the transaction is not subject to a financing condition.

Last month, EGC entered into an amendment to the agreement and plan of merger with Cox Oil which set the closing date of the merger on October 10, 2018.

The amendment also provides that Cox cannot refuse to consummate the merger because of any material adverse events occurring on or after September 10, 2018, until the closing date.

The merger deal

Cox Oil offered to buy all the outstanding shares of Energy XXI Gulf Coast for $322 million on June 18. The agreed price was $9.10 per fully diluted share in cash, representing a 21% premium to EGC’s closing share price on June 15, 2018.

EGC’s board of directors unanimously approved the transaction with Cox after evaluating multiple options, including a proposal from Orinoco Natural Resources (ONR) and its affiliates to assume EGC’s non-core asset portfolio and related asset retirement obligations.

On September 6, 2018, the merger was approved by EGC’s stockholders at a special meeting on the same date. At the special meeting, 69.1% of votes were cast in favor of the merger.