BP Gets First Chance to Sell US Pipeline Stake Since its IPO

(Bloomberg) -- Large holders of BP Midstream Partners LP may sell up to 10 million additional units starting Tuesday, when they become available to trade for the first time since October's IPO.

Oil giant BP Plc owns nearly half of this stake, which can be sold after the IPO lockup period expires on Tuesday. The 180-day lockup period also applies to insiders at BP and other affiliates.

BP listed the master limited partnership in October at $18 per unit. The stock has since seesawed above and below the listing price, trading as low as $16.83 and as high as $23. Units are trading at $18.51 intraday on Monday.

A sale by BP may come in the form of a seemingly dilutive equity offering by BP Midstream itself, the MLP warned in a filing. BP Midstream would then use the cash proceeds to redeem an equal number of units held by its former parent.

BP Midstream has 52.4m units outstanding as of March 22, according to data compiled by Bloomberg. BP reports first quarter results on May 1, while the MLP reports on May 10.

--With assistance from Michael Bellusci

To contact the reporter on this story: Drew Singer in New York at dsinger28@bloomberg.net.

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Morwenna Coniam


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