Sale of Retail Supplier with 300,000 Customers Falls Through, Parent Re-opens Sale Process

MVC Capital, Inc. announced yesterday the termination of its agreement to sell U.S. Gas and Electric (USG&E) to United States Gas & Electric Holdings, Inc. ("US Holdings"), a company that had been organized to acquire USG&E.

The contemplated acquisition had been first reported by EnergyChoiceMatters.com. For background on US Holdings, click here for our prior story

"US Holdings was unable to satisfy the closing conditions of the original agreement (October 4, 2013) and subsequently submitted a transaction termination notice to MVC on December 10, 2013," MVC Capital said.

"Following the expiration of the exclusive closing rights granted to US Holdings as part of the sale agreement, the Board of Directors of MVC Capital determined it prudent and in the best interest of its shareholders to then reopen the sale process," MVC Capital said.

"While we are disappointed USG&E was not sold under the terms of the original agreement, this significant, performing asset provides MVC with optionality," said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital.

"We have received indications of interest to purchase USG&E from other potential buyers. We also note the viable option to retain ownership of USG&E and look to benefit from its consistent operating performance, growth potential and solid cash flow," Tokarz said.

As of July 2013, U.S. Gas & Electric, Inc. had grown to more than 285,000 customers, and expected to reach nearly 330,000 customers by the end of 2013