AGL Resources, an energy distribution company, agreed on Tuesday to buy Nicor for $2.4 billion in cash and stock to create a new big player in the natural gas market.þþUnder the terms of the deal, AGL will pay $21.20 in cash and 0.8382 of an AGL share for each Nikor share, for a total value of $52.32 a share at Monday’s closing stock price. þþThe offer represents a 20 percent premium to Nicor’s closing share price on Dec. 1, the last day before speculation about a potential deal emerged.þþThe merger will create a natural gas company with about 5.5 million customers across seven states and $5.1 billion in annual revenue. It will keep the AGL name and remain based in Atlanta, though it will establish a gas distribution headquarters in Nicor’s hometown of Naperville, Ill.þþAfter the deal is completed, which is expected in the second half of 2011, AGL shareholders will own 67 percent of the combined company and Nicor shareholders will own the rest.þþAGL was advised by Goldman Sachs and the law firm Dewey & LeBoeuf. Nicor was advised by JPMorgan Chase and the law firm Latham & Watkins, while its board was counseled by Sidley Austin.þ
Source: NY Times
