Clayton Williams Energy Proposes Mergers to Acquire Southwest Royalties Partnerships
Clayton Williams Energy, Inc. (NASDAQ: CWEI) today announced that its wholly owned subsidiary, Southwest Royalties, Inc., has filed preliminary proxy statements with the Securities and Exchange Commission related to proposed mergers between SWR and six partnerships of which SWR is the general partner.
As currently proposed, each Public Partnership that approves the merger would merge into SWR, and the partnership interests of such Public Partnership, other than those interests owned by SWR, would be converted into the right to receive cash. SWR would not receive any cash payment for its partnership interests in the Public Partnerships; however, as a result of each merger, SWR would acquire 100% of the assets and liabilities of the Public Partnerships.
CWEI and SWR also intend to propose mergers between SWR and 18 additional partnerships of which SWR is the general partner. CWEI believes that the terms and conditions of the other mergers would be substantially similar to the terms and conditions of the mergers for the Public Partnerships described in the preliminary proxy statements. CWEI expects that the merger agreements would be finalized and signed promptly after clearing SEC staff comments to the preliminary proxy statements for the Public Partnerships. Each of the proposed mergers would be subject to significant conditions described in the preliminary proxy statements, including approval by the limited partners of each partnership.
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