The Board intends to form a conflicts committee consisting of independent directors of the Board to consider the proposal
Image: Tallgrass Energy announces receipt of "take private" proposal. Photo: courtesy of PublicDomainPictures from Pixabay.
Tallgrass Energy, LP (NYSE: TGE) today announced that the board of directors of its general partner (the “Board”) has received a non-binding preliminary proposal letter, dated August 27, 2019, from Blackstone Infrastructure Partners, its partners and respective affiliates (collectively, the “Sponsors”) to acquire all of the outstanding Class A shares representing limited partner interests in TGE (the “Class A Shares”) not already owned by the Sponsors for $19.50 per Class A Share in cash. A copy of the proposal letter is attached as Annex A to this press release.
The $19.50 per Class A Share price of the proposal represents an approximate 35.9% premium over TGE’s closing price on August 27, 2019, and a premium of approximately 12% to its volume weighted average price during the last 30 calendar days. The Sponsors collectively hold an approximate 44.2% economic interest in TGE as of August 27, 2019.
The Board intends to form a conflicts committee consisting of independent directors of the Board to consider the proposal. The Board expects that the conflicts committee will retain independent advisors, including independent financial and legal advisors, to assist it in this process.
The proposal constitutes only a preliminary indication of interest by the Sponsors and does not constitute any binding commitment with respect to the proposed transaction or any other transaction. No agreement, arrangement or understanding between TGE and the Sponsors relating to any proposed transaction will be created unless definitive documentation is executed and delivered by the Sponsors, TGE and all other appropriate parties.
TGE does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
Source: Company Press Release