Bloomberg reported that Regency Energy Partners LP had agreed to acquire PVR Partners LP in a USD3.88 billion stock and cash deal. Regency Energy is a pipeline partnership which counts billionaire Kelcy Warren as its majority shareholder via Energy Transfer Equity LP. The acquisition of PVR Partners was deemed as a strategic one to expand Regency Energy's capabilities in natural gas transport and processing.
Shareholders of PVR would stand to get a 1.02 Regency Energy common share per PVR share. PVR shareholders would also get a one-time payout amounting to USD40 million in total.
Regency Energy offered a USD26.68 price per share unit of PVR. This would be a 26% premium from yesterday's trading close price. Part of the offer would also have Regency Energy absorbing PVR's debt totaling USD1.8 billion.
Regency Energy Chief Executive Officer Michael Bradley would head the new consolidated company. The agreement would be finalized early next year.
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