Under the merger agreement, Goldstream will commence a tender offer to purchase all the outstanding shares of United Fuel’s common stock not already owned by SC Fuels and its affiliates, at a purchase price of $0.30 per share, net to the seller in cash.
Frank Greinke, chairman and CEO of United Fuel and president of Goldstream, said: “This is a great opportunity for United Fuel shareholders. We believe United Fuel investors will see our tender offer as the best way to maximize the value of their investment in United Fuel.”
The merger is subject to the completion of tender offer by Goldstream and customary closing conditions. Following the completion of the tender offer, United Fuel will be merged into Goldstream, and any remaining shares of United Fuel will be cancelled and converted into right to receive $0.30 net cash per share. In addition, United Fuel may, subject to terms of merger agreement, responding to unsolicited proposals and negotiate with parties that submit competing proposals. If United Fuel accepts a superior proposal, a break-up fee would be payable by United Fuel to SC Fuels.
