Natural gas pipeline company Targa Resources Corp. (NYSE: TRGP) said it would acquire the common units of its MLP, Targa Resources Partners LP (NYSE: NGLS), that it did not already own, in a deal that valued TRP at about $6.67 billion.
Targa, which has a stake of about 8.8% in the MLP, said on Nov. 3 it has offered 0.62 of its share for each Targa Resources Partners unit.
The offer values Targa Resources Partners at $36.09 per share, and represents a premium of 18.4% to the stock's closing price on Nov. 2, according to Reuters' calculations.
Houston-based Targa formed Targa Resources Partners in 2006 to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets.
Targa owns a 2% general partner interest (which the company holds through its 100% ownership interest in the general partner of the partnership), all of the outstanding IDRs and a portion of the outstanding limited partner interests in Targa Resources Partners.
Targa Resources Partners is a leading provider of midstream natural gas and NGL services in the U.S., according to the company's website. The company has assets in the Permian Basin, Barnett Shale, Bakken Shale, Eagle Ford Shale, Anadarko Basin, Arkoma Basin, onshore Louisiana and the Gulf of Mexico.
Evercore Partners is adviser to the Targa's board and Barclays is its financing adviser. Citigroup is financial adviser to the conflicts committee of Targa Resources Partners. Richards, Layton & Finger is legal counsel to the conflicts committee of Targa Resources Partners and Vinson & Elkins LLP is legal counsel to Targa.
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