2010-04-08-2010-02-24

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
10MM
Description

To acquire company with assets in U.S. Rockies.

An investment group led by Scotia Waterous (USA) Inc. plans to acquire Pinnacle Gas Resources Inc., Sheridan, Wyo., (Nasdaq: PINN) in a deal worth approximately $10.2 million.

The group, which includes Pinnacle chief executive Pete Schoonmaker and chief financial officer Ronald T. Barnes, as well as DLJ Merchant Banking Partners III LP, will pay $0.34 per share for Pinnacle's 29.9 million shares outstanding. The offer represents a 28% increase over the company's closing price of approximately $0.27 per share on Feb. 23.

Upon closing, Pinnacle, which has assets in Wyoming and Montana, will no longer be publicly owned or traded.

Pinnacle's board unanimously approved the sale upon recommendation of a special committee and has encouraged shareholders to support the buyout. The committee was formed in October 2009 to consider strategic alternatives in light of Pinnacle's ongoing liquidity problems.

The deal is expected to close during the second quarter of 2010.

FBR Capital Markets & Co. acted as financial advisor to the strategic alternative committee, while Scotia Waterous was financial advisor to the investor group.