UGI Corp. seeks acquisition of AmeriGas’ remaining publicly held units
Category: #business  By Mateen Dalal  Date: 2019-04-04
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

UGI Corp. seeks acquisition of AmeriGas’ remaining publicly held units
  • UGI would be fully consolidating its ownership of AmeriGas with the acquisition of 69.2 million publicly held common units
     
  • AmeriGas unitholders would receive 0.5 shares of UGI common stock, along with a $7.63 in cash consideration for every AmeriGas’ common unit

UGI Corp. and AmeriGas Partners, L.P. have recently announced that the companies have entered in a merger agreement. Under this agreement, UGI would be fully consolidating its ownership of the biggest retail propane marketer in the nation, AmeriGas, with the acquisition of 69.2 mn publicly held common units.

A news release from UGI Corp. suggests that AmeriGas unitholders would be receiving UGI common stock’s 0.5 shares, under the terms of the agreement, as well as $7.63 in cash consideration for every AmeriGas’ common unit. This allegedly represents a premium of 21.9 percent over AmeriGas’ 30-day volume weighted average price and a 13.5 percent premium to the closing price of $31.13 on April 1, 2019.

UGI said the unitholders of AmeriGas will keep on receiving a $0.95 per unit distribution for every quarter being completed before the closing of the merger. Chief Executive Officer and President of UGI Corporation, John L. Walsh, mentioned that both the firms have a 60 year long and successful history in working together.

Walsh added that a consolidation of the ownership of AmeriGas maximizes value for the two companies and their respective stakeholders, as they would be better positioned for investing and growing. UGI particularly welcomes the current unitholders of AmeriGas and looks forward to becoming exceptional stewards of their capital, he commented.

Apparently, the completion of this merger deal is subject to the satisfaction of customary conditions. The merger has to be approved by a majority of the outstanding common units of AmeriGas, as part of this partnership agreement.

UGI’s affiliates purportedly own around 26 percent of the outstanding common units, and have inked a support agreement with AmeriGas, wherein they have agreed to vote their common units in the favor of this transaction. UGI has also announced a cumulative dividend increase of 25 percent.

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Sequoia India launches Spark Fellowship to support female entrepreneurs

Sequoia India launches Spark Fellowship to support female entrepreneurs

By Mateen Dalal

The Spark fellowship program is for women entrepreneurs in India and Southeast Asia. The year-long program is aimed at bringing more gender diversity and supporting startups led by women. Sequoia Capital has recently revealed the launch of a yea...

Biden names avid tech critic Jonathan Kanter as DOJ antitrust chief

Biden names avid tech critic Jonathan Kanter as DOJ antitrust chief

By Mateen Dalal

U.S. President Joe Biden will reportedly nominate Jonathan Kanter, a competition lawyer, and fervid Google critic, to head the antitrust division of the Justice Department. Kanter has been actively representing several companies in competition cases...

UK’s Freedom Day tainted by growing infections and PM’s self-isolation

UK’s Freedom Day tainted by growing infections and PM’s self-isolation

By Mateen Dalal

U.K. Prime Minister Boris Johnson’s ‘Freedom Day’ has reportedly been ruined by forced self-isolation, rising COVID-19 infections, and warnings of shortages in supermarkets. For the record, England has had strict lockdowns since th...