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Market Chatter: KKR Makes $9 Billion Takeover Bid for UGI

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Private-equity firm KKR has made a $9 billion takeover offer for UGI, valuing the natural gas and electricity distributor at $42.50 per share, WSJ reported on Tuesday, citing industry sources.

It could not be determined immediately whether UGI's board is receptive to the proposal, and there are no guarantees that the discussions will lead to a transaction with KKR or any other prospective buyer.

UGI operates regulated natural-gas and electric utilities, the propane retailer AmeriGas, and an extensive network of natural-gas pipelines and storage facilities. The company also distributes liquefied-petroleum products across Europe.

The approach underscores a broader shift in investor sentiment toward the utility sector, as natural-gas power producers have emerged as highly sought-after acquisition targets amid a dramatic surge in electricity demand. KKR and UGI did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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