A lawsuit was filed for investors in shares of investors of LRR Energy LP (NYSE:LRE) in connection with the proposed takeover was announced and NYSE:LRE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/29/2015 -- An investor in shares of LRR Energy LP (NYSE:LRE), filed a lawsuit against the proposed takeover of LRR Energy LP by Vanguard Natural Resources for a value of approximately $8.93 per share. The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:LRE stockholders by agreeing to sell LRR Energy LP. too cheaply via an unfair process to Vanguard Natural Resources, LLC.
Investors who purchased shares of LRR Energy LP (NYSE:LRE) and currently hold any of those NYSE:LRE shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On April 20, 2015, Vanguard Natural Resources, LLC (NASDAQ:VNR) and LRR Energy LP (NYSE:LRE) announced that they have entered into a Purchase Agreement and Plan of Merger pursuant to which a subsidiary of Vanguard will merge into LRR Energy, L.P. and, at the same time, Vanguard will acquire LRE GP, LLC, the general partner of LRR Energy, L.P. (collectively, "LRR Energy", or "LRE") for total consideration of $251 million in Vanguard common units and the assumption of LRE's net debt of $288 million. Under the terms of the transaction, LRR Energy LP unitholders will receive 0.55 of a Vanguard Natural Resources, LLC common unit for each unit of LRR Energy LP they own. The transaction values LRR Energy LP at approximately $8.93 per unit.
However, the plaintiff claims that the proposed consideration NYSE:LRE shareholders will receive is grossly inadequate and undervalues LRR Energy LP. Indeed, at least one analyst has set the high target for NYSE:LRE units at $16.00 per units. Furthermore, LRR Energy LP (NYSE:LRE) reported that its annual Total Revenue rose from $115.09 million in 2013 to $187.91 million in 2014 and that its Net Loss of $48.23 million in 2013 turned into a Net Income of $52.74 million in 2014. Units of LRR Energy LP (NYSE:LRE) traded in July 2014 as high as $20.11 per share.
In addition, the plaintiff claims that the process is also unfair to NYSE:LRE stockholders. Indeed, certain affiliates of Lime Rock Resources, LRR Energy LP's largest unitholder, owning over 30% of its outstanding equity, have already agreed to support and vote in favor of the transaction.
Those who are current investors in LRR Energy LP (NYSE:LRE) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego