Investing.com-- Australian LNG producer Woodside (OTC:WOPEY) Energy Ltd (ASX:WDS) said on Monday that it will acquire U.S.-based peer Tellurian Inc (NYSE:TELL), gaining access to the firm’s Driftwood development on the Gulf Coast.
Woodside will pay $1 in cash for each share of Tellurian, representing an over 75% premium to Tellurian’s close on Friday. The per-share figure values Tellurian at $900 mln, with an implied enterprise value of $1.2 billion.
The deal will add a U.S. LNG development to Woodside’s portfolio, increasing the firm’s future output, as well as its presence in the U.S. Tellurian’s board of directors approved the transaction.
Tellurian’s Driftwood LNG project, near Lake Charles, Louisiana, is the focus of the deal, with Woodside also extending a $230 million loan to the firm to ensure steady development of Driftwood.