Vanguard Natural Resources LLC announced the acquisition of LRE GP LLC, the general partner of LRR Energy LP, for $539 million. The consideration comprises $251 million in Vanguard common units and the assumption of $288 million of LRE's net debt. As part of the arrangement, a subsidiary of Vanguard will merge with LRR Energy LP.
Vanguard will pay LRE unit holders 0.55 Vanguard common units for every LRE common unit held. In addition, Vanguard will acquire all of the limited liability company interests in LRE GP LLC in exchange for 12,320 Vanguard common units. The consideration to be received by LRE unit holders is valued at $8.93 per LRR Energy common unit based on Vanguard's closing price as of 20-Apr-2015, representing a 13% premium to LRR Energy's closing price on 20-Apr-2015, and a 19% premium to LRR Energy's 10-day volume weighted average price....
