Tallgrass Energy has received a non-binding preliminary proposal letter from Blackstone Infrastructure Partners to acquire all of the outstanding Class A shares representing limited partner interests in TGE not already owned by the Sponsors for $19.50 per Class A Share in cash.
The latest transaction will be valued at $3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company’s latest filing.
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.
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