UGI Corp. and propane retailer AmeriGas Partners LP set the deadline for election of unit holders' preferred consideration and the completion date of their cash-and-stock simplification merger.
AmeriGas unit holders have until Aug. 20 to vote on the form of consideration they want at the closing of the companies' merger, expected Aug. 21. The election deadline has no impact on the deadline for AmeriGas unit holders to vote on the merger, which will be considered at a special meeting Aug. 21, according to an Aug. 12 news release.
UGI owns a roughly 26% stake in AmeriGas, and its Amerigas Propane Inc. subsidiary serves as AmeriGas' general partner. Under a merger agreement reached in April, UGI would acquire the 69.2 million AmeriGas common units it does not already own. In exchange, AmeriGas unit holders would get 0.50 UGI common share and $7.63 in cash for each AmeriGas common unit held. The consideration represents a 21.9% premium to AmeriGas' 30-day volume-weighted average price and a 13.5% premium to the April 1 closing price.
Once the deal is closed, AmeriGas will become a wholly owned subsidiary of UGI and will no longer be a master limited partnership.