King & Wood Mallesons and Herbert Smith Freehills have the lead roles on the merger of Australian energy companies Horizon Oil Ltd. and Roc Oil Co. Ltd., which will create a new company with a market capitalization of $740 million.
In the all-stock transaction, which was announced on Tuesday, Horizon shareholders will get 0.724 shares of Roc for each Horizon share they hold. Once the deal is completed, Horizon shareholders will control 58 percent of the newly merged company, with Roc shareholders controlling 42 percent.
The deal allows the two companies to diversify their respective assets outside of the offshore areas they each currently have in northern and southern China. Horizon also has oil and gas assets in New Zealand and Papua New Guinea, while Roc’s other assets are in Australia, Malaysia, Myanmar and the United Kingdom.
The boards of directors of both companies have endorsed the deal, and closing is expected in August, following approval by Horizon shareholders.
King & Wood Mallesons Brisbane partner Stefan Luke is leading the team advising Horizon. Herbert Smith Freehills is acting for Roc Oil.
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