Tallgrass Energy (Tge) LP late Tuesday evening said its general partner’s board has received a non-binding offer from Blackstone Infrastructure Partners to acquire all outstanding Class A shares in Tallgrass not already owned, Kallanish Energy reports.
The all-cash offer is $19.50 per Class A share, a roughly 35.9% premium over Tge’s closing price on Aug. 27, and a premium of approximately 12% to its volume weighted average price during the last 30 calendar days.
Blackstone et al hold an approximate 44.2% economic interest in Tge as of Aug. 27, for which it paid $3.2 billion earlier this year.
In a letter to the general partner’s board dated Aug. 27, Wallace C. Henderson, senior managing director of Blackstone Infrastructure Advisors, stated it’s expected the deal would be structured as a merger, through which a buyer-controlled acquisition entity would merge into Tallgrass, with Tallgrass surviving the merger.
Midstreamer Tallgrass said the board intends to form a conflicts committee consisting of independent directors of the board to consider the proposal. Said committee is expected to retain independent advisors, including independent financial and legal advisors, to assist in the process.
This post appeared first on Kallanish Energy News.