Apache Corp. board OKs new holding-company structure

/ / News

Oil and gas company Apache Corp. said late Monday its board of directors has authorized the creation of APA Corp., a new holding company. APA Corp. will replace Apache Corp. as the public company trading on the Nasdaq stock exchange, under the same symbol. Existing shares of Apache will be automatically converted, one for one, into shares of APA. Apache’s board and executives will continue in their same roles at the new company. APA Corp. will buy the Suriname and Dominican Republic subsidiaries from Apache Corp., and Apache Corp. will become a direct subsidiary of APA Corp., continuing to hold its existing assets in the U.S., subsidiaries in Egypt and the UK, and its current interests in transportation and storage companies. “These steps modernize our operating and legal structure, making it more consistent with other companies that have subsidiaries operating around the globe,” Chief Executive John J. Christmann IV said in a statement. “A holding company offers advantages in risk management, provides financial and administrative flexibility, and more closely aligns our legal structure with our growing international presence.” The rejigging is expected to be completed in the first quarter.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.