Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE:KYN) has successfully merged with Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE:KMF), a move that consolidates their positions in the energy infrastructure sector. The combined entity now trades under the ticker symbol KYN.
The merger resulted in KMF becoming a wholly owned subsidiary of KYN. This strategic step was taken to bolster KYN's market presence and enhance value for stockholders. Following the completion of the merger, KYN reported a significant increase in its total assets to $2.3 billion and a net asset value (NAV) of $1.7 billion.
Stockholders of KMF were given the option to receive compensation either in the form of newly issued common stock of KYN or a cash consideration. The cash option was calculated using 95% of KMF's NAV per share as of the close of business on Friday.
The exchange rate for the merger was determined based on each fund's NAV per share as of November 10, 2023. With 169.1 million shares outstanding after the merger, KYN's post-merger NAV per share stands at $9.95.
This consolidation is part of KYN's ongoing commitment to deliver high after-tax total returns and regular cash distributions to its stockholders. The merger is expected to create a stronger platform for growth and investment in the energy infrastructure space.
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