Cheniere Energy to Acquire Holding Company
September 30 2016 - 9:40AM
Dow Jones News
Natural-gas exporter Cheniere Energy Inc. on Friday said it made
an all-stock offer to fully merge with Cheniere Energy Partners LP
Holdings LLC, valuing the company that owns and operates its assets
at $5.07 billion.
Cheniere, which already holds an 80.1% stake in Cheniere Energy
Partners, offered 0.5049 Cheniere shares for each share of Cheniere
Energy Partners, representing a value of $21.90 per share of
Cheniere Energy Partners, or a 3% premium over its Thursday closing
price.
Cheniere Chief Executive Jack Fusco said the deal would allow
investors in Cheniere Energy Partners the opportunity "to
participate in the future success of the entire Cheniere
complex."
Last month, Cheniere posted a second-quarter loss as its ramp-up
in production of liquefied natural gas faces a world-wide glut that
is depressing prices. Surging natural-gas supplies in North America
and slowing demand from traditional buyers in Asia have pushed down
LNG spot prices and made it more difficult for suppliers to sign
fixed-price contracts needed to secure financing for export
projects.
In premarket trading, Cheniere rose 1.2% to $43.89, while
Cheniere Energy Partners jumped 13% to $23.95.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 30, 2016 09:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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