Energy Transfer completes Southern Union merger
US natural gas pipeline firms Energy Transfer (ETE) and Southern Union have successfully completed the previously-announced merger of Southern Union with and into Sigma Acquisition Corp., a wholly-owned subsidiary of ETE.
Southern Union is the surviving entity in the merger and will continue to operate as a wholly-owned subsidiary of ETE, the companies said.
Further details on the $7.9 billion deal, which was announced in June 2011, can be read here.
Under the terms of the merger agreement, Southern Union stockholders were able to elect to exchange each outstanding share of Southern Union common stock for $44.25 of cash or 1.00x ETE common unit, with no more than 60% of the aggregate merger consideration payable in cash and no more than 50% of the merger consideration payable in ETE common units.
Based on the final results of the merger consideration elections, holders of approximately 54% of outstanding Southern Union shares, or 67,985,929 shares, will receive cash, while holders of approximately 46% of outstanding Southern Union shares, or 56,981,860 shares, will receive ETE common units.
Effective with the closing of the market today, Southern Union will cease to be a publicly traded company and its common stock will stop trading on the NYSE.
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