TransCanada bids US$848M to buy rest of Columbia Pipeline Partnership
Limited partnership has interests in three regulated US natural gas pipelines.
CALGARY — TransCanada Corp. is offering about US$848 million cash to buy all the equity in Columbia Pipeline Partners LP that it doesn’t already own, strengthening its grip on a pipeline network that stretches from New York to the Gulf of Mexico.
The company’s offer to other investors in the Houston-based limited partnership follows TransCanada’s purchase of the Columbia Pipeline Group. That deal was valued at US$13-billion, including US$2.8 billion in debt.
Calgary-based TransCanada effectively became the main partner of Columbia Pipeline Partners LP on July 1. The announcement indicates it plans to buy out the other investors in CPPL for US$15.75 per common unit.
It says the offer is 11.3% above the 30-day average closing price for the partnership units.
The proposed transaction is subject to certain conditions, including approval under US anti-trust law and by a majority of CPPL unitholders.
The limited partnership has interests in three regulated US natural gas pipelines that serve markets extending from New York to the Gulf of Mexico, as well as storage and related midstream assets.News from © Canadian Press Enterprises Inc. 2016