Inergy, L.P. and Inergy Holdings, L.P. Agree to Merge

 

Inergy, L.P. (NRGY) and its publicly traded general partner Inergy Holdings, L.P. (NRGP) announced on August 9 that they have reached a definitive agreement to merge NRGP into NRGY. The merger will terminate the incentive distribution rights (IDRs) in NRGY currently owned by NRGP, with NRGY owning NRGP's economic interest, resulting in a single streamlined entity with an enterprise value of over $6 billion based on current market values.

Under the terms of the merger agreement, NRGP unitholders will receive 0.77 common units in NRGY for every NRGP unit they own at closing. NRGY will issue an additional 47.7 million units to as a result of the transaction. At the close of the transaction, the former NRGP unitholders will own approximately 43.8% of NRGY. Management expects that the transaction will benefit unitholders of both entities and attract a broader investor base through a lower cost of capital, improved opportunities for growth, greater liquidity, and increased investor transparency via a simplified ownership structure.

Click here to see the press release announcing the proposed merger.

Click here to a presentation on the proposed merger.