Gas Natural (EGAS), which operate utilities for 68,000 customers in four U.S. states, Monday reported a $13.10 a share merger agreement with energy-infrastructure investor First Reserve. The sale price was 70.6% above Gas Natural’s Friday close. Shares of Gas Natural are 70% higher in Monday’s premarket trading.
The sale price places an enterprise value of $196 million on Gas Natural.
Gas Natural said it intends to continue paying a quarterly cash dividend of $0.075 per share pending approval of the merger and a prorated dividend for any partial period prior to transaction closing.
The definitive merger agreement provides for a 42-day “go-shop” period until Nov. 22, during which Gas Natural may actively solicit alternative proposals.
The company said it expects to complete the transaction in H2 2017.