Plains All American Pipeline (NYSE:PAA) has entered into a merger agreement with PAA Natural Gas Storage (UNKNOWN:PNG.DL). Under the terms of the merger, PAA Natural Gas will become wholly owned by Plains All American, and PNG stockholders will receive 0.445 additional units of PAA stock per each common share they own of PNG.
The transaction is expected to close within the latter half of Q4 2013 and will see PAA issuing 14.7 million additional units of common stock to shareholders. PAA Natural Gas' latest quarterly dividend of $0.3575 per stock will not be disrupted and will be made payable on Nov. 14 as per its original schedule.
On the day of this announcement, Plains All American's stock moved from $51.90 to $52.08 per share, peaking at $52.66. PAA Natural Gas, meanwhile, saw its price per share drop from $23.15 to $22.99, peaking at $23.32.
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