Robbins Arroyo LLP: Acquisition of Columbia Pipeline Partners LP (CPPL) by Columbia Pipeline Group, Inc. (Private) May Not Be...
September 26 2016 - 7:13PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Columbia Pipeline
Partners LP (the "Partnership") (NYSE: CPPL) by Columbia Pipeline
Group, Inc. ("Columbia") (Private). On September 26, 2016, the
Partnership announced the receipt of an offer pursuant to which
Columbia will acquire the Partnership. Under the terms of the
agreement, the Partnership unitholders will receive $15.75 in cash
for each unit of the Partnership common units.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/columbia-pipeline-partners-lp
Is the Proposed Acquisition Best for the Partnership and Its
Unitholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at the Partnership is undertaking a fair process to
obtain maximum value and adequately compensate its unitholders.
As an initial matter, the $15.75 merger consideration represents
a premium of only 2.90% based on the Partnership's closing price on
September 23, 2016. This premium is significantly below the average
one day premium of nearly 65.55% for comparable transactions within
the past three years. Further, the $15.75 merger consideration is
significantly below the target price of $23.00 set by an analyst at
Credit Suisse on March 18, 2016; $22.00 set by an analyst at
Jefferies on January 14, 2016; $20.00 set by an analyst at Scotia
Howard Weil Inc. on December 15, 2015; $17.00 set by analysts at
Barclays and JP Morgan on July 27, 2016 and May 26, 2016,
respectively; and $16.00 set by an analyst at Morgan Stanley on
August 3, 2016. In the last three years, the Partnership traded as
high as $29.00 on March 3, 2015, and most recently traded above the
merger consideration – at $16.02 – on August 2, 2016.
On August 2, 2016, the Partnership reported strong earnings
results for its second quarter 2016. The Partnership reported net
cash flows from operating activities of $177.2 million,
representing a 17.2% increase over the prior year of $151.2
million. Adjusted EBITDA attributable was $24.7 million for the
second quarter compared with $21.3 million in the prior-year
period, a 16.0% increase.
In light of these facts, Robbins Arroyo LLP is examining the
Partnership's board of directors' decision to sell the company now
rather than allow unitholders to continue to participate in the
company's continued success and future growth prospects.
The Partnership unitholders have the option to file a class
action lawsuit to ensure the board of directors obtains the best
possible price for unitholders and the disclosure of material
information. The Partnership unitholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com,
or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160926006503/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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