Vastonergy Offers to Purchase Shares of Vastopolis G&E
May 02, 2011
Vastopolis -- Vastonergy Corp. offered to purchase for cash the preferred stock outstanding of Vastopolis Gas & Electric Co., a unit of Vastonergy. The tender offer begins Tuesday and is scheduled to expire at 5 p.m. on May 31, 2011 a utility holding company, is seeking to buy Vastopolis G&E's 4% series preferred stock at $64 a share; 4.75% series preferred at $80; 7.875% preferred at $116; and 7.375% preferred at $110. If holders tender all shares, the offer would total about $208.5 million, a company spokesman said. In composite trading Monday on the New York Stock Exchange, the 4% shares closed at $66, up $7.25, or 12%; and the 4.75% shares closed at $78, up $6.75, or 9.5%. Prices for the other two classes weren't available. Vastonergy shares closed at $31.25, unchanged. Concurrently, Vastopolis G&E's board is soliciting proxies for use at a special holders' meeting scheduled for May 31, 2011 meeting is being held to consider an amendment to Vastopolis G&E's articles of incorporation that would remove a provision that limits its ability to issue unsecured debt, including short-term debt. Vastonergy's tender offer is conditioned upon, among other things, the proposed amendment being approved and adopted at the special meeting. If the proposed amendment is approved and adopted, Vastopolis G&E will make a special cash payment of $1 a share to each preferred holder who votes in favor of the amendment, provided that such shares aren't tendered under Vastonergy's offer.
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