Brief: Equus signs agreement to acquire U.S. Gas & Electric

Equus Total Return

24/04/2017 21:32

April 24 (Reuters) - Equus Total Return Inc  EQS.N : 
    * Equus signs agreement to acquire U.S. Gas & Electric, Inc. 
    * Equus Total Return-consideration to be paid to usg&e 
shareholders consists of 32.6 million shares of equus stock at a 
deemed price of $3.28 per share 
    * Equus Total Return - consideration to be provided also 
consists of $40 million worth of 5-year mandatory convertible 
equus preferred stock 
    * Equus Total Return - preferred stock may be converted at 
any time into equus common stock at conversion prices ranging 
from $3.28 to $4.10 per share 
    * Equus Total Return Inc says consolidation may not be 
accretive to existing equus stockholders 
    * Equus-Assuming conversion of preferred stock at $3.28 per 
share, usg&e shareholders will hold about 76.8% of common stock 
of combined companies 
    * Equus Total Return Inc - definitive agreement to acquire 
and consolidate its operations with u.s. Gas & electric 
    * Equus Total Return Inc- in addition to approving 
consolidation, equus board of directors has also approved a 
3-for-1 reverse split of its common stock 
    * Equus Total Return Inc - consolidation with u.s. Gas & 
electric will be effected in two stages 
    * Equus Total Return - first stage of consolidation consists 
of acquisition of 90.3 pct of USG&E's capital stock from mvc, 
certain other usg&e stockholders 
    * Equus Total Return - second stage of consolidation 
consists of merger of unit of equus with and into usg&e, with 
usg&e as surviving corporation 
 
Source text for Eikon:  ID:nMKWj9Ybma  
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