Stock prices for Battalion Oil Corporation (NYSE: BATL) are skyrocketing on US stock charts today. At the time of last check during current session, BATL stock was up 81.80% to $9.59. BATL stock price is rising after takeover news became public.

Battalion (BATL) today announced that Fury Resources, Inc. and Battalion have entered into an agreement and plan of merger (the Merger Agreement). The Merger Agreement lays out that Fury Resources will acquire all shares of BATL Common Stock. The stock acquisition for Merger Consideration amounts to $9.80 per share in cash. The transaction is valued at approximately $450 million for Battalion.

Those holding BATL Preferred Stock include Oaktree Capital Management, L.P., Luminus Management LLC, or their respective affiliates (collectively, the “Rollover Stockholders”). They will contribute BATL Preferred Stock to Fury Resources in exchange for new preferred shares or sell those Preferred Stocks to Fury Resources at a valuation determined by their conversion or redemption values.

As part of the closing conditions, which include the approval of Battalion’s stockholders, the transaction is expected to close in the first quarter of 2024. In accordance with the Merger Agreement, AI Partners Asset Management Co., Ltd; and Fortress Credit Corp. have pledged to finance a portion of the Merger Consideration.

As a result of the transaction, the Rollover Stockholders, who own 61.61 % of BATL Common Stock, have entered into a Voting Agreement with Fury Resources under which they will, among other things, be able to cast 6,254,652 votes in favor of the merger. In total, it represents 38% of the votes on the Company’s capital stock, in favor of adopting the Merger Agreement.