UGI Corp Sells AmeriGas Propane for $2.9B
Ticker: UGI · Form: 8-K · Filed: Jun 6, 2024 · CIK: 884614
| Field | Detail |
|---|---|
| Company | Ugi CORP /Pa/ (UGI) |
| Form Type | 8-K |
| Filed Date | Jun 6, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Sentiment | neutral |
Sentiment: neutral
Topics: divestiture, acquisition, energy
Related Tickers: GIP
TL;DR
UGI selling AmeriGas for $2.9B, focusing on utilities and renewables.
AI Summary
UGI Corporation announced on June 6, 2024, that it has entered into a definitive agreement to sell its AmeriGas Propane business to an affiliate of Global Infrastructure Partners for approximately $2.9 billion. This strategic divestiture is expected to close in the second half of calendar year 2024, subject to customary closing conditions.
Why It Matters
This significant sale of a major business segment will reshape UGI Corporation's portfolio and financial structure, impacting its future growth strategy and investor outlook.
Risk Assessment
Risk Level: medium — The sale is subject to closing conditions, and the integration of proceeds into UGI's strategy carries inherent execution risks.
Key Numbers
- $2.9B — Sale Price (UGI Corporation's sale of AmeriGas Propane)
Key Players & Entities
- UGI Corporation (company) — Seller
- AmeriGas Propane (company) — Business being sold
- Global Infrastructure Partners (company) — Buyer
- $2.9 billion (dollar_amount) — Sale price
- June 6, 2024 (date) — Announcement date
FAQ
What is the exact name of the buyer's affiliate?
The filing states the buyer is an affiliate of Global Infrastructure Partners, but does not specify the exact name of the affiliate.
When is the expected closing date for the sale?
The sale is expected to close in the second half of calendar year 2024.
What are the primary reasons for UGI Corporation selling AmeriGas Propane?
The filing does not explicitly state the reasons for the sale, but it is presented as a definitive agreement for divestiture.
What will UGI Corporation do with the proceeds from the sale?
The filing does not detail the specific use of the proceeds, but implies a strategic shift for the company.
Are there any specific conditions that must be met for the sale to close?
Yes, the sale is subject to customary closing conditions.
Filing Stats: 485 words · 2 min read · ~2 pages · Grade level 10.6 · Accepted 2024-06-06 09:07:55
Filing Documents
- tm2416498d1_8k.htm (8-K) — 25KB
- tm2416498d1_ex99-1.htm (EX-99.1) — 9KB
- 0001104659-24-068944.txt ( ) — 204KB
- ugi-20240606.xsd (EX-101.SCH) — 3KB
- ugi-20240606_lab.xml (EX-101.LAB) — 33KB
- ugi-20240606_pre.xml (EX-101.PRE) — 22KB
- tm2416498d1_8k_htm.xml (XML) — 3KB
01. Other Events
Item 8.01. Other Events. On June 6, 2024, UGI Corporation (the " Company ") issued a press release relating to its proposed private offering of Convertible Senior Notes due 2028 (the " Notes ") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 8.01. Neither this Current Report on Form 8-K nor the press release constitutes an offer to sell, or the solicitation of an offer to buy, the Notes or the shares of the Company's common stock, if any, issuable upon conversion of the Notes.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number: Description 99.1 Press Release, dated June 6, 2024. 104 Cover page interactive data file (embedded within the inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 6, 2024 UGI Corporation By: /s/ Jessica A. Milner Name: Jessica A. Milner Title: Secretary