Crius Energy Trust Completes Acquisition of Remaining Interest in Crius Energy, LLC
June 24,2016
Crius Energy Trust ("Crius" or the "Trust") announced that it has completed the Remaining LLC Acquisition and now holds, directly or indirectly, a 100% interest in Crius Energy, LLC (the "Company").
The transaction was touted by the company as improving its market capitalization and trading liquidity, as well as enhancing its access to the capital markets
The Remaining LLC Acquisition was completed for aggregate consideration comprised of 14,760,000 units of the Trust and approximately C$58.2 million in cash.
"We are very pleased to have successfully completed this transaction, which has increased the Trust's ownership position in the Company from 43.1% to 100% on a non-dilutive basis", commented David Kerr, Chairman of the board of directors of Crius Energy Administrator Inc., the administrator of the Trust. He further commented that, "the transaction greatly simplifies the organizational structure, increases the Trust's market capitalization and is expected to improve trading liquidity and access to the capital markets, which we believe will contribute to long-term value creation for our investors as we continue to progress with our growth strategy."
Remaining LLC Acquisition
On May 18, 2016, the Trust and Crius Energy Corporation, an indirect wholly-owned subsidiary of the Trust, initiated a tender offer, as amended on June 9, 2016 (the "Tender Offer"), to purchase all of the membership units ("LLC Units") of the Company not already owned, directly or indirectly, by the Trust (the "Remaining LLC Acquisition"). All 19,458,942 LLC Units subject to the Tender Offer were validly tendered by the holders thereof, following which the Trust acquired, directly or indirectly, the 19,458,942 LLC Units for aggregate consideration comprised of 14,760,000 units of the Trust and approximately C$58.2 million in cash.