Wednesday, March 28, 2012

Energy Transfer Equity, Southern Union announce completion of merger

Energy Transfer Equity, L.P. (NYSE: ETE) and Southern Union Co. (NYSE: SUG) on March 26 announced the successful completion of 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.

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 percent of the aggregate merger consideration payable in cash and no more than 50 percent of the merger consideration payable in ETE common units. Based on the final results of the merger consideration elections, holders of approximately 54 percent of outstanding Southern Union shares, or 67,985,929 shares, will receive cash, while holders of approximately 46 percent of outstanding Southern Union shares, or 56,981,860 shares, will receive ETE common units.

Effective with the closing of the market on March 26, Southern Union ceased to be a publicly traded company and its common stock stopped trading on the NYSE.

In connection with the closing of the merger of Southern Union and ETE, Energy Transfer Partners, L.P. (NYSE: ETP) announced that it has successfully completed the previously announced merger of a wholly owned ETP subsidiary with and into Southern Union subsidiary CrossCountry Energy, LLC, which owns an indirect 50 percent interest in Citrus Corp., the owner of the Florida Gas Transmission pipeline system. After the merger, CrossCountry Energy will remain as the surviving entity and will be a wholly owned subsidiary of ETP.

The total merger consideration is approximately $2.0 billion (comprised of $1.895 billion in cash and approximately 2.25 million ETP common units).

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