PVG common unit trading on the New York Stock Exchange has now ceased, and PVR common units will continue to be traded on the same exchange under PVR.
Under the deal, those holding PVG units will receive 0.98 PVR common units for each PVG common unit. Any fractional units resulting from the exchange will be paid to holders in cash.
A majority of PVG shareholders, 81%, voted in favor of the transaction during a special meeting held last week. PVR shareholders already had approved the merger and related proposals February 16.
The companies initially signed their definitive merger agreement last September. PVR now owns its general partner, PVG.
"We are pleased with the agreement of the boards of directors of PVR and PVG to merge the partnerships," PVR and PVG chief executive officer William Shea said at that time.
"We think that the lower cost of capital that is expected to result from the merger, and the simplified partnership structure, will position PVR to take advantage of accretive market opportunities and grow our quarterly distribution. The current management team, which will remain in place, is excited about the prospects for PVR following the merger, and we believe this transaction will be beneficial to the unitholders of both [companies].”
Penn Virginia Resource Partners owns and manages coal and natural resource properties, and controls a total of about 900 million tons of proven coal reserves in northern and central Appalachia, the Illinois Basin and San Juan Basin.
