By Chris Wack

Archaea Energy Inc. said Monday it is being bought by BP PLC for $26 a share in cash, or a total enterprise value of $4.1 billion, including $800 million of net debt.

The cash consideration represents a 38% premium to Archaea's average share price for the 30 days ended Friday.

The companies are targeting closing the acquisition by the end of this year.

Certain existing Archaea shareholders, who collectively own 27% of its outstanding shares, have agreed to vote their shares in favor of the transaction. Closing is not subject to any financing condition.

Upon completion of the transaction, Archaea will operate as a subsidiary within BP and become part of the larger global organization.

Archaea shares were up 50% to $25.31 in premarket trading.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

October 17, 2022 07:43 ET (11:43 GMT)

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