APU will become a subsidiary of UGI and will no longer be an MLP.
Under the deal terms, APU unitholders will receive 0.50 shares of UGI common stock plus $7.63 in cash for each APU common unit, representing a 13.5% premium to the April 1 closing price.
UGI expects the deal to increase its cash flow per share by 15% for FY 2020, be accretive to adjusted EPS beginning in FY 2020 and support the increase in UGI's annualized dividend by $0.16/share for the July dividend.
Also, UGI cuts its FY 2019 adjusted EPS guidance to $2.40-$2.60 from $2.75-$2.95, citing "significantly warmer than normal winter weather in its European markets."
UGI also plans to raise its Q2 dividend by 15% to $0.30/share and by an additional 10% following the close of the APU deal.
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