TransCanada Corp. (NYSE: TRP) said on Sept. 26 its unit, Columbia Pipeline Group, offered to buy Columbia Pipeline Partners LP (NYSE: CPPL) for about $848 million in cash.
The $15.75 per common unit offer represents a premium of 11.3% to Columbia Pipeline Partners' 30-day average closing price as of Sept. 23, TransCanada said.
A committee of independent directors of Columbia Pipeline Partners' board will be formed to consider the offer as the general partner of Columbia Pipeline Partners is an indirect unit of Columbia Pipeline Group, TransCanada said.
RELATED: Moving On: TransCanada Buys Columbia Pipeline In $13 Billion Merger
TransCanada, which completed its $10.3 billion takeover of Columbia Pipeline Group in July, had said it was reviewing strategic alternatives for MLP holdings, including Columbia Pipeline Partners LP.
Columbia Pipeline Partners LP is a Delaware MLP with interests in three regulated U.S. natural gas pipelines, as well as storage and related midstream assets.
TransCanada, Canada's second-largest pipeline company, has retained Morgan Stanley as its financial adviser and Vinson & Elkins as legal adviser.
Recommended Reading
Trump Tariff Threat Raises Consternation Among Oil Lobbying Groups
2024-11-26 - Late Nov. 25, President-elect Donald Trump said one of his first executive orders would be to enact a 25% tariff on “all products” originating from Canada and Mexico, a move that could escalate refined products prices.
Attitude Adjustment Incoming from DC, Energy Experts Say
2024-11-25 - The energy Industry can expect more cooperation from the federal government through personnel and policy adjustments.
Electrification of Permian Faces a Problem: Not Enough Shock for the System
2024-11-21 - Permian Basin producers may have to wait years for Texas utilities to grow the grid.
US Grid Operator Faces New Complaint Over Power Supply Auction
2024-11-19 - PJM Interconnection, the largest U.S. grid operator, is being accused of unfairly awarding high payments to power plants and pushing up electricity costs for homes and businesses.