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Tallgrass Energy receives take-private offer from Blackstone
Energy - AUGUST 29, 2019

Tallgrass Energy receives take-private offer from Blackstone

by Andrea Zander

Midstream energy firm Tallgrass Energy has received a buyout offer from Blackstone Infrastructure Partners and affiliates for $19.5 a share in cash.

The latest transaction will be valued at $3.03 billion based on the number of class A shares of 179.2 million at the end of July 31, reported Reuters.

“The board intends to form a conflicts committee consisting of independent directors of the board to consider the proposal,” the company said in a statement.

Blackstone and other sponsors already own a 44.2 percent stake in Tallgrass Energy. The buyout offer is to acquire the shares in the company that they do not already own.

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.

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