Penn Virginia Resource Partners and Penn Virginia GP Holdings
Announce Merger Agreement
Penn Virginia Resource Partners, L.P. (PVR) and its publicly traded general partner Penn Virginia GP Holdings (PVG) announced on September 21, 2010 that they have reached a definitive agreement that will result in the two partnerships merging, with PVR owning PVG. Under the terms of the agreement, PVG unitholders will receive 0.98 PVR units for each PVG unit held at closing.
Expected benefits from the merger include a lower cost of capital, enhancing PVR's ability to pursue growth opportunities; increasing the trading liquidity of PVR units; simplifying PVR's capital and governance structure; and allowing PVR unitholders to elect all of the directors of the general partner's board. The three independent directors of PVG are expected to join PVR's board after the merger.
The merger represents the fifth announcement that a GP that is a publicly traded partnership is being folded into its lower-tier PTP; one (Magellan Midstream Holdings) has been completed and four are in process.. Of the ten such GPs formed in 2005-2006, only four will remain once these transactions are completed (Hiland Holdings GP and its PTP Hiland Partners were merged with an affiliate and taken private in December 2009).
General Partner Publicly Traded Partnerships |
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| General Partner | Symbol | IPO |
Merger Announced |
|
1 |
Alliance Holdings GP, L.P, |
NASDAQ:AHGP |
5/10/2006 |
-- |
2 |
Atlas Pipeline Holdings, L.P. |
AMEX/AHD |
7/20/2006 |
-- |
3 |
Buckeye GP Holdings, L.P |
NYSE/BGH |
8/3/2006 |
06/11/2010 |
4 |
Energy Transfer Equity, L.P |
NYSE/ETE |
2/3/2006 |
-- |
5 |
Enterprise GP Holdings, L.P. |
NYSE/EPE |
8/23/2005 |
9/7/2010 |
6 |
Hiland Holdings GP, L.P. * |
NASDAQ:HPGP |
9/20/2006 |
6/1/2009; completed 12/4/2009 |
7 |
Inergy Holdings, L.P. |
NASDAQ/NRGP |
6/21/2005 |
8/9/2010 |
8 |
Magellan Midstream Holdings, L.P. |
NYSE/MMG |
2/10/2006 |
3/3/2009; completed 9/30/2009 |
9 |
NuStar GP Holdings, LLC |
NYSE/NSH |
7/10/2006 |
-- |
10 |
Penn Virginia GP Holdings, L.P |
NYSE/PVG |
12/5/2006 |
9/21/2010 |
*Merged along with the MLP into an affiliate and taken private. |
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Click here to see the press release announcing the merger agreement.
Click here to see a presentation summarizing the transaction.