Blackstone Infrastructure Partners, along with its partners and affiliates, has offered to buy the rest of Tallgrass Energy’s class A shares in an all-cash deal, Tallgrass announced today.
Blackstone and its affiliates, which already own a 44.2 percent stake in Tallgrass, including 23.7 million class A shares, issued a nonbinding preliminary proposal on Tuesday, to acquire the remaining shares for $19.50 each, according to Reuters.
The latest transaction is valued at $3 billion, according to data compiled by Bloomberg.
The company said the proposal offer represents a 35.9 percent premium over Tallgrass’s closing price on Aug. 27.
Tallgrass is a midstream energy company that transports crude oil and natural gas from prolific basins in the Rocky Mountains, Upper Midwest and Appalachian regions to major demand markets in the Rockies, the Midwest, eastern Ohio, and beyond.
The company owns and operates 8,300 miles of natural gas pipeline, 800 miles of crude pipeline, and more than 300 miles of water pipeline across the United States.
Tallgrass’s shares have fallen 40 percent since January, when Blackstone and its affiliates agreed to acquire Tallgrass’s general partner and a 44 percent economic interest in the company for $3.3 billion.
Tallgrass plans to form a committee to consider the proposal, which is not a binding agreement.
