Magellan Petroleum Buys Back 17% of Common Stock; Shares Surge 8%

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Magellan Petroleum Corporation ( MPET ) announced that on January 14, 2013, the company entered into a Collateral Purchase Agreement with Sopak AG, a Swiss subsidiary of Glencore International plc.

Under the terms of this agreement, Magellan agreed to purchase from Sopak 9,264,637 shares of Magellan's common stock and a warrant granting Sopak the right to purchase from the company an additional 4,347,826 shares of common stock.

In exchange for the shares and the warrant, Magellan paid to Sopak $10 million in cash consideration, which the company funded from its own balance sheet resources.


Excluding the warrant, the shares repurchased from Sopak represent approximately 17% of the company's shares outstanding immediately prior to the transaction.

MPET shares are up 7.6% at $1.00.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: MPET

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