We are investigating the fairness of the all-stock transaction valued at $89.45 per share pursuant to which Denbury, Inc. (NYSE: DEN) (“Denbury”) has agreed to be sold to Exxon Mobil Corporation (“Exxon”).
If you remain a Denbury shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On July 13, 2023, Denbury announced that it had agreed to be sold to Exxon in an all-stock transaction valued at $89.45 per share, a bare 1.9% premium to Denbury’s closing stock price on July 12, 2023.
“We are investigating whether the Denbury Board of Directors acted in the best interests of Denbury shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether in light of the tiny premium, the price agreed upon is fair to Denbury shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for Denbury in the last 90 days published on Seeking Alpha, there is a high price target of $140.00 per share, and an average price target of $108.17 per share, which indicates that most Wall Street analysts think the implied deal price is far too low. Indeed, as investors have noted on SeekingAlpha, Denbury has developed a significant carbon capture infrastructure over the years, which is a valuable asset given industry efforts to reduce emissions.
According to Crunchbase data, in just the past year, more than half a billion dollars was invested by venture capital firms in dozens of startups working on technologies to reduce industrial carbon emissions, store captured CO2, and navigate the complex landscape of carbon credits.