FX Energy convertible preferreds to be redeemed in Orlen acquisition

New York, Oct. 13 – FX Energy, Inc.’s 9.25% series B cumulative convertible preferred stock will be redeemed as part of the acquisition of the company by Orlen Upstream Sp zoo, according to a news release.

The convertibles will be repaid at a price of $25.00 per share plus accrued dividends up to but excluding the redemption date.

The two companies announced on Tuesday that Orlen Upstream will acquire FX Energy for $1.15 per share in cash, a transaction that values FX Energy at $119 million including net debt as of June 30.

FX Energy said the acquisition is the outcome of its previously announced exploration of a possible sale of the company or other transaction.

“Following a thorough process conducted with our financial advisor, the board of directors determined that this transaction provides the best opportunity to deliver value to our stockholders in view of the challenges we face with the current commodity-price environment, currency exchange-rate fluctuations and our current capital structure and limited access to the capital necessary to realize the value of our assets in Poland,” said David N. Pierce, FX Energy’s president and chief executive officer, in the news release.

Closing is expected in the fourth quarter.

FX Energy is a Salt Lake City-based oil and gas exploration and production company operating in the United States and Poland. Its main activity is in Poland’s Permian basin.

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