Natural-gas exporter Cheniere Energy has made an offer to acquire remaining stake in its subsidiary Cheniere Energy Partners.
The all stock offer was made to acquire the publicly held shares of Cheniere Partners Holdings not already owned by Cheniere. It is subject to negotiation and execution of a definitive agreement.
Cheniere president and CEO Jack Fusco said said: "We believe the proposed transaction is attractive to investors in Cheniere Partners Holdings who, as new LNG shareholders, would have the opportunity to participate in the future success of the entire Cheniere complex.
"In addition, shareholders of Cheniere Partners Holdings would receive an attractive premium over its recent trading levels and a significant increase in the trading liquidity of their investment."
Cheniere, which currently holds an 80.1% stake in Cheniere Energy, has offered 0.5049 Cheniere shares for each share of Cheniere Energy Partners. This represents $21.90 per common share of Cheniere Partners.
The offer is expected to value Cheniere Energy Partners at $5.07bn, The Wall Street Journal reported.
Cheniere said that the transaction is structured as a merger of Cheniere Partners with a wholly-owned subsidiary of Cheniere.
Through Cheniere Energy Partners, Cheniere own and operate the Sabine Pass LNG receiving terminal and Creole Trail Pipeline located in Louisiana,
Cheniere is also developing additional liquefaction facilities near Corpus Christi, Texas.
Being designed for up to five trains, the Corpus Christi LNG terminal is expected to have aggregate nominal production capacity of approximately 22.5 mtpa of LNG, three LNG storage tanks with capacity of approximately 13.5 Bcfe and two marine berths.