Penn Virginia GP Holdings, L.P. (NYSE: PVG) and Penn Virginia Resource Partners, L.P. (NYSE: PVR) on March 9 announced that a majority of PVG unitholders have approved their proposed merger. That means at least temporary dilution of the value of PVR, and the unit value dipped at the close of the market on March 9 to $26.62, down $1.70.
At PVG's special unitholder meeting on March 9, approximately 21.3 million PVG units, or approximately 54 percent of the PVG units outstanding and entitled to vote, voted in favor of the merger agreement and related matters.
Of the total votes cast by PVG unitholders, approximately 81 percent voted in favor of the merger.
PVR's unitholders have previously approved the merger and other merger-related proposals at PVR's special unitholder meeting held on Feb. 16.
"The support for the merger shown by both PVG and PVR unitholders validates the importance of this strategic transaction and positions us to take advantage of accretive market opportunities," said William H. Shea, Jr., CEO of the partnerships' general partners. "The simplified capital structure is expected increase our competitiveness and to enhance our long-term growth profile."
The merger is expected to close on March 10, resulting in PVG unitholders receiving 0.98 PVR common units for each PVG common unit. Cash will be paid to PVG unitholders in lieu of any fractional units that would have resulted from the exchange. The holders of PVR common units will continue to own their existing units.
The trading of PVG common units on the New York Stock Exchange will be discontinued before the opening of the market on the business day following the day on which the merger closes. The PVR common units will continue to be traded on the New York Stock Exchange under the ticker symbol PVR.