Originally Posted on Fuel Fix
The former CEO of Houston’s Cheniere Energy is taking his new company public by acquiring the financially struggling Magellan Petroleum Corp. in a reverse takeover.
After being ousted from Cheniere in December, Charif Souki formed privately held Tellurian Investments this year and partnered with the former chief operating officer of BG Group, Martin Houston. They are developing Driftwood LNG, a major liquefied natural gas export project in Louisiana. They are aiming to raise $12 billion to finance the project.
The financial terms of the Tellurian-Magellan merger aren’t yet being revealed, but Tellurian is acquiring 95 percent of Magellan shares, which were trading at $1.20 a share before the deal was announced. Shares of Denver-based Magellan quickly jumped by about 220 percent on the news. Magellan was previously in the process of unloading assets and considering strategic alternatives to avoid filing for bankruptcy.
