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

NEA AND SLA SIGN MOU TO SHARE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS)-DERIVED MOISTURE DATA FOR WEATHER MONITORING APPLICATION

NEA AND SLA SIGN MOU TO SHARE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS)-DERIVED MOISTURE DATA FOR WEATHER MONITORING APPLICATION

By Mateen Dalal

Singapore, 2 August 2022 – The National Environment Agency (NEA) and the Singapore Land Authority (SLA) have signed a Memorandum of Understanding (MOU) to develop the use of Global Navigation Satellite System (GNSS) data obtained from SLA&rsqu...

Baidu launches Apollo RT6; seeks expansion of its robotaxi fleet

Baidu launches Apollo RT6; seeks expansion of its robotaxi fleet

By Mateen Dalal

Baidu, a leading China-based artificial intelligence (AI) company and search engine, has reportedly uncovered its most recent electric autonomous driving vehicle. As per credible sources, the new vehicle, Apollo RT6, will be a part of the robotaxi...

ParTech launches PAR Infinity for improvised technological solutions

ParTech launches PAR Infinity for improvised technological solutions

By Mateen Dalal

ParTech, Inc. a leading international provider of combined commerce for enterprise restaurants, has reportedly declared the launch of PAR Infinity. As per sources, the subscription centric hardware offering integrates PAR’s purposely develop...