Blackstone to Snag Tallgrass with Beefed Up Bid
U.S. pipeline operator Tallgrass Energy, LP has entered into a definitive merger agreement under which Blackstone Infrastructure Partners will acquire all of Tallgrass’ remaining shares.
According to a Tuesday announcement, Blackstone will acquire Tallgrass’ Class A shares for $22.45 cash each. This is a sweetened deal from Blackstone’s offer in August, which was $19.50 per share and offered a 36 percent premium to the day’s close.
Blackstone and affiliates plan to pay for the share with $3 billion of equity.
Tallgrass has had a few changes in its executive leadership recently. Late last month, Tallgrass CEO David Dehaemers Jr. announced his retirement from the company and in early December, Tallgrass named Matthew Sheehy as its new president.
Blackstone’s acquisition is expected to close in the second quarter of 2020.
Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC served as financial advisors to Blackstone Infrastructure Partners. Evercore Group LLC served as the financial advisor to the Conflicts Committee of the Board of Directors of TGE’s General Partner.
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