DENVER—Shares of Venoco Inc. surged more than 40 percent Tuesday after the oil and gas company agreed to be taken private by its chairman and CEO for $12.50 per share.
With 58.8 million shares outstanding, the deal values the company at about $734.6 million. The per-share price is what the executive originally offered last August.
Timothy Marquez already owned 50.3 percent of Venoco’s outstanding common stock.
The price is 63 percent higher than Venoco’s closing price on Friday, the last trading day before Monday’s announcement. The deal is subject to shareholder and regulatory approval.
On Tuesday, the company said Marquez—who is also Venoco’s founder—will step down as CEO in the third quarter of this year. He will remain chairman.
The Denver oil and gas company said that Ed O’Donnell, senior vice president for Southern California operations, will become chief operating officer. He originally joined Venoco in 1997.
The stock jumped $3.11, or 41 percent, to $10.80 in midday trading. The stock has ranged between $6.67 and $22.46 in the past year.
