Energy Transfer Equity Announces Southern Union Stockholders Approve Merger

abarrelfullabarrelfull wrote on 12 Dec 2011 09:06
Tags: deals energy-transfer midstream pipelines usa

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Energy Transfer Equity, L.P. (NYSE:ETE) is pleased to announce that Southern Union Company (NYSE:SUG) stockholders voted overwhelmingly to approve the proposed merger with ETE at today's special meeting of Southern Union stockholders.

Approximately 98 percent of the shares voted at today's meeting voted in favor of the adoption of the merger agreement, which represented approximately 80 percent of Southern Union's total outstanding shares of common stock as of the October 11, 2011 record date for the special meeting.

As previously announced on July 19th, 2011, ETE and Southern Union entered into an amended and restated merger agreement for ETE to acquire SUG for $9.4 billion, including $5.7 billion in cash and ETE common units. Under the terms of the revised agreement, which was unanimously approved by the boards of directors of both companies, SUG shareholders could elect to exchange each outstanding Southern Union common share for $44.25 of cash or 1.00x ETE common unit. The maximum cash component is 60% of the aggregate consideration and the common unit component can fluctuate between 40% and 50%. Elections in excess of either the cash or common unit limits will be subject to proration.

The merger is expected to be consummated in the first quarter of 2012, subject to regulatory approval.

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