The agreement values KCS at $31.41 per share based on Petrohawk's closing stock price yesterday. KCS closed at $28.66.
The deal calls for the exchange of each KCS share for $9 in cash and 1.65 Petrohawk shares. After the deal closes, current KCS holders will own about half of the combined entity, which will keep the Petrohawk name.
The company, to be headquartered in Houston, will have an estimated proved reserves of about 1 trillion cubic feet of natural gas equivalent on a pro forma basis.
