Energy

Tallgrass Energy accepts Blackstone's take-private offer

Key Points
  • Tallgrass Energy accepted an offer from Blackstone Infrastructure Partners and its affiliates to acquire shares in the U.S. midstream energy company that they do not already own.
  • Blackstone Infrastructure's latest offer of $22.45 per Class A share represented a premium of 22.7% to the company's last close on Monday.
Blackstone Group office in Luxembourg.
Geert Vanden Wijngaert | Bloomberg | Getty Images

Tallgrass Energy said on Tuesday it accepted an offer from Blackstone Infrastructure Partners and its affiliates to acquire shares in the U.S. midstream energy company that they do not already own.

Blackstone Infrastructure's latest offer of $22.45 per Class A share represented a premium of 22.7% to the company's last close on Monday.

Blackstone Infrastructure Partners along with affiliates Spain's Enagas, GIC, NPS, and USS already own nearly 44% of the total Class A and Class B shares of Tallgrass.

The U.S. energy firm had initially received a take-private offer from Blackstone and its partners in August, following which Tallgrass had commissioned a Conflicts Committee.

The committee has unanimously approved the transaction, the statement said on Tuesday.

The transaction will value the company's public float at about $4.02 billion, based on the number of Class A shares of 179.2 million, as of October-end.

Blackstone Infrastructure will fund the transaction with about $3 billion in equity and remaining by debt, Tallgrass said.

In a separate statement, Spanish firm Enagas said it has agreed to invest $836 million in the U.S. pipeline operator as part of a takeover involving other investors.

Citigroup Global Markets Inc and Credit Suisse Securities are the financial advisers to Blackstone Infrastructure Partners, while Evercore Group acted as the financial adviser to Tallgrass.