TransCanada to Buy Columbia Pipeline Partners -- Update
September 26 2016 - 10:47AM
Dow Jones News
By Judy McKinnon
TransCanada Corp. said Monday it had offered $848 million to buy
Columbia Pipeline Partners LP, the master limited partnership
affiliate of its newly acquired Columbia Pipeline Group Inc.
unit.
The Canadian pipeline operator closed its more-than-$10-billion
purchase of the Houston-based pipeline company in July and has been
reviewing its strategic options for its master limited partnership
holdings since then.
Calgary, Alberta-based TransCanada said it agreed to offer
$15.75 a unit for all 53.8 million outstanding units of Columbia
Pipeline Partners. The offer represents a nearly 3% premium over
the limited partnership closing price of $15.30 on Friday.
TransCanada said a committee of independent directors of
Columbia Pipeline Partners will be formed to consider the
offer.
The Columbia Pipeline limited partnership has interests in three
regulated U.S. natural-gas pipelines extending from New York to the
Gulf of Mexico, plus natural-gas storage systems and a portfolio of
gathering and processing assets.
TransCanada also owns TC PipeLines LP, a limited partnership
with stakes in a number of U.S. natural-gas pipelines including the
Bison pipeline, which runs between Wyoming and North Dakota.
The decision to buy the Columbia Pipeline limited partnership
was determined to be the "preferable approach" and concludes the
strategic-review process, a TransCanada spokesman said in an email.
TC PipeLines will remain in its current form as a publicly traded
entity, he said.
Write to Judy McKinnon at judy.mckinnon@wsj.com
Write to Judy McKinnon at judy.mckinnon@wsj.com
(END) Dow Jones Newswires
September 26, 2016 10:32 ET (14:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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