In preparation for the potential closing of the merger of Nicor Inc. (NYSE: GAS) with AGL Resources Inc. (NYSE: AGL), Nicor’s Board of Directors declared a special pro rata dividend today to ensure that shareholders continue to receive a dividend at the current rate until the closing of the merger. This pro rata dividend is contingent upon the completion of the merger prior to December 31, 2011, Nicor’s next regularly scheduled dividend record date.

The Board of Directors declared a pro rata dividend of $0.005054348 per share, per day that will accrue from October 1, 2011 until and including the day before the merger effective date. This pro rata dividend, which is the daily equivalent of the current quarterly dividend rate of $0.465 per share, will be payable to Nicor shareholders of record at the close of business on the day immediately prior to the effective date of the merger. The merger effective date is not currently known, but is expected to occur in the fourth quarter of 2011. The dividend will be paid as soon as practical following the completion of the merger. This pro rata dividend is in addition to the previously announced November 1, 2011 dividend that was paid to shareholders of record as of September 30, 2011. Following the merger closing, AGL Resources is expected to pay a dividend at the rate of $0.004945055 per share, per day for the remainder of the current quarterly dividend period. These dividend payment scenarios, together with a similar plan announced today by AGL Resources, will synchronize the companies’ dividends as of the merger effective date in accordance with the merger agreement.

If the merger has not closed by December 31, 2011, then Nicor shareholders of record on December 31, 2011 will receive the regular quarterly dividend of $0.465 per share, payable on February 1, 2012 and a new pro rata dividend will be declared to ensure that shareholders receive a dividend at the current rate until the merger is completed.

If you liked this article you might like

How Competition Drives Stocks Nowhere: Cramer's 'Mad Money' Recap (Tuesday 7/11/17)

New Lifetime High Today: AGL Resources (GAS)

New Lifetime High Reached: AGL Resources (GAS)

Insider Trading Alert - DHIL, GAS And NE Traded By Insiders

Southern Co. Buying PowerSecure for $431 Million Cash